BYD Malaysia has confirmed it will not proceed with its proposed completely knocked-down (CKD) assembly plant in Tanjung Malim, Perak, marking a shift in its local manufacturing strategy even as talks with Malaysian vendors on alternative assembly arrangements move into an advanced stage.
Managing Director Jacob Ma told a local media that the decision followed a strategic review aimed at finding a model that would better fit Malaysia’s automotive ecosystem.
He said BYD began discussions with local vendors last year and intends to work more closely with domestic partners as it builds its presence in the country.
The Chinese electric vehicle maker also has no immediate plans to source vehicles from Indonesia unless specific models are unavailable in Malaysia and local demand justifies the move.
Ma said BYD is taking a long-term view on regional production capacity, with planning stretching 10 to 20 years as the company looks to expand its manufacturing footprint across the region.
BYD has sold more than 35,000 vehicles in Malaysia since entering the market, including over 7,500 units in the first half of this year.
Its local manufacturing strategy has been under scrutiny since plans for the Tanjung Malim facility appeared to stall earlier this year. BYD vice-president Liu Xueliang said on Sept 5 that the group would continue exploring partnerships with Malaysian companies to support the development of the country’s new energy vehicle industry.
In May, BYD was also reported to be assessing a potential contract assembly arrangement with Sime Motors’ Inokom plant in Kulim, Kedah, as part of its review of local manufacturing options.
