Chinese electric vehicle manufacturer BYD is set to announce its plan for further expansion in Malaysia within a week, according to company officials [1, 2, 3]. BYD Vice-President Liu Xueliang said the company is continuing to explore cooperation with local partners to support Malaysia's new energy vehicle industry [1, 2, 3]. However, BYD has not confirmed whether it will pursue a partnership or establish its own manufacturing facility in the country [1, 2, 3].
Earlier this year, progress on BYD’s proposed manufacturing plant in Tanjung Malim, Perak, stalled by March 2026 [1, 2, 3]. In May 2026, BYD reportedly evaluated a potential contract assembly partnership with Sime Motors’ Inokom plant in Kulim, Kedah, signaling possible collaboration with local manufacturers [1, 2, 3].
Malaysia implemented stricter regulations on EV imports starting July 1, 2026. Fully imported or completely built-up EVs must now have a minimum cost, insurance, and freight (CIF) value of RM200,000 and produce at least 245 horsepower (180 kilowatts) [2, 3]. This followed the expiry of Malaysia’s special tax exemption for imported fully built-up EVs at the end of 2025, increasing pressure on automakers to reconsider their market strategies [2, 3].
Despite these challenges and delays in establishing manufacturing facilities, BYD has reaffirmed its commitment to long-term investment in Malaysia [3]. The company appears poised to clarify its approach within days, balancing regulatory compliance and local partnerships.
BYD’s upcoming announcement is expected between September 7 and September 13, 2026, and will reveal whether it will deepen local collaborations or expand production operations independently in Malaysia [1, 2, 3].
