PETALING JAYA: BYD Malaysia has confirmed that it will not proceed with plans to establish a completely knocked-down (CKD) assembly plant in Tanjung Malim, Perak, according to a report by Harian Metro.
However, BYD Malaysia managing director Jacob Ma was quoted as saying that discussions with local vendors on potential local assembly operations were at an advanced stage.
According to the report, Ma said the decision not to proceed with the Tanjung Malim plant was made following a change in strategy aimed at identifying the most suitable approach for BYD to participate in Malaysia’s automotive ecosystem.
“We want to ensure BYD can move in tandem with the local automotive ecosystem. We started discussions with vendors in the country last year and want to see how we can work with them and become part of the ecosystem,” he was quoted as saying.
Ma also reportedly said current vehicle stocks were sufficient, although supplies of certain models remained limited. He added that BYD was working closely with its distributors to meet customer demand.
On vehicle imports from Indonesia, Ma said BYD had no immediate plans to source vehicles from the neighbouring country unless a particular model was unavailable in Malaysia and demand justified such imports, according to the report.
He was also quoted as saying that BYD’s production capacity planning should be viewed from a long-term perspective of between 10 and 20 years, in line with the company’s strategy to expand its manufacturing capacity in the region.
Ma reportedly said BYD had sold more than 35,000 vehicles since the brand was introduced in Malaysia, including more than 7,500 units in the first half of this year.
The report comes after BYD vice-president Liu Xueliang said on Sept 5 that the company would continue exploring cooperation with local partners to support the development of Malaysia’s new energy vehicle industry.
BYD’s local manufacturing strategy and potential partnerships have come under scrutiny since plans for a plant in Tanjung Malim appeared to stall in March.
The government later announced that fully imported EVs must have a minimum import value of RM200,000 from July, following social media claims over conditions allegedly tied to BYD’s manufacturing licence.
In May, BYD was also reported to be evaluating a contract assembly partnership with Sime Motors’ Inokom plant in Kulim, Kedah, as it reviewed its local manufacturing strategy.
