PETALING JAYA: New conditions attached to BYD Automotive Malaysia Sdn Bhd’s interim manufacturing licence are part of a broader policy applied to all new automotive investments in Malaysia, says Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.
In a statement on Tuesday (March 31), he said BYD received an interim manufacturing licence on Sept 29, 2025, to assemble energy-efficient passenger vehicles, including electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), at its Tanjung Malim plant in Perak.
According to Johari, the licence includes conditions designed to promote export-oriented production by leveraging Malaysia’s free trade agreements and regional supply chains. Similar conditions have applied to new automotive investments since September 2025, except for projects using existing local assembly facilities.
He was responding to reports that BYD is reconsidering its plan to invest in a completely knocked down (CKD) plant in Tanjung Malim after failing to reach an agreement on new terms.
Under the licence, BYD’s domestic sales are capped at 10,000 units, or about 20% of its total production capacity, with the remainder expected to be exported. The assembly process must include the local body shop, as well as paint and trim operations. Fully finished, painted body shells sourced from outside Malaysia do not count towards local value-add, although BYD may source components globally. The minimum on-the-road price for vehicles sold domestically is set at RM100,000.
Johari said the conditions apply equally to all high-volume automotive assembly projects, regardless of brand or country of origin, and are intended to align with the National Automotive Policy and the New Industrial Master Plan 2030.
Separately, Johari said there is no ban on importing new pickup truck models into Malaysia. Commercial vehicles, including pick-up trucks, remain subject to CKD localisation requirements, but completely built-up imports are still allowed under a limited quota via the Market Research Pre-Assembly (MRA) approved permit.
“There has been no announcement from my ministry to ban the import of new pick-up brands into the country,” he said.
