KUALA LUMPUR, April 4 — Chinese electric vehicle giant BYD is reportedly reassessing its plan to establish a completely knocked down (CKD) assembly plant in Tanjong Malim after failing to reach agreement with Malaysia’s Ministry of Investment, Trade and Industry (MITI) over key policy conditions.
Central to the dispute is a requirement that up to 80% of locally assembled vehicles be exported, leaving only 20% for the domestic market. Additionally, vehicles sold locally must carry a minimum price of RM200,000 — a condition the company is understood to have rejected.
BYD had initially targeted to begin operations in the second half of 2026, but the impasse may now force a strategic review of its investment plans. MITI has defended the measures as necessary to safeguard Malaysia’s automotive ecosystem.
Which supports an estimated 700,000 jobs and relies heavily on national carmakers such as Proton and Perodua. Both brands maintain around 50% local content and play a critical role in the domestic supply chain.
However, industry observers warn that stringent export quotas and pricing floors could deter foreign investment and disrupt broader EV development. The situation has also raised concerns over regulatory consistency, even as other manufacturers proceed with their own CKD plans.
Despite the uncertainty, BYD remains a strong player in Malaysia’s EV market, recording over 14,000 units sold in 2025, reflecting growing demand for electric mobility.
