BYD rethinks Malaysia plant as government policies spark investment review
Chinese automaker BYD is reconsidering its plans for a local assembly plant in Malaysia. The company cites unfavourable government conditions as the reason for the review. Meanwhile, the Ministry of Investment, Trade and Industry (Miti) maintains that its policies apply equally to all carmakers. In September 2025, BYD received an interim Manufacturing Licence from Miti, allowing it to proceed with a CKD (completely knocked-down) assembly plant. Under the licence, the company's locally assembled vehicles must have a minimum on-the-road (OTR) price of RM100,000. Additionally, BYD's domestic sales would be capped at 10,000 units per year—20% of its total projected production capacity.
Miti has clarified that its investment requirements are consistent for all new automotive projects since September 2025. The ministry emphasises that no carmaker faces isolated or discriminatory conditions, regardless of brand or country of origin. It also confirmed that no Chinese automobile brands had been officially licensed for local production in Malaysia before BYD's announcement.
The ministry's approach focuses on industry development rather than protectionism. It also denied claims of a ban on new pick-up truck imports. For fully imported (CBU) electric vehicles under the AP Franchise policy, the minimum OTR price remains RM100,000 until December 31, 2025. BYD's review of its Malaysian plant comes amid broader industry rules set by Miti. The ministry's policies apply uniformly to all high-volume assembly projects, with no exceptions for specific brands. The outcome of BYD's reassessment will determine whether the company proceeds with its planned investment in the country.
