PETALING JAYA: New automotive investment conditions are non-discriminatory and equally applicable to all high-volume automotive assembly projects regardless of brands and countries of origin, says Datuk Seri Johari Abdul Ghani.
The Investment, Trade and Industry Minister was responding to claims that the government has imposed unfavourable conditions for Chinese electric vehicle (EV) manufacturer BYD, which is reportedly re-evaluating its plans for a local completely knocked down (CKD) assembly plant in Tanjung Malim, Perak.
Denying that the ministry has imposed unfavourable or discriminatory conditions on car makers, Johari said the intention was to ensure local assembly capacity moves toward sustainable, higher-value market segments and to avoid displacement of the established vendor ecosystem.
BYD was not singled out, as the same condition applies to all new CKD entrants, he said in a statement yesterday.
Explaining the ministry’s condition that BYD exports 80% of its plant production, Johari said the limitation in domestic sales of up to 10,000 units per year corresponds to 20% of BYD’s total projected production capacity.
“This is a pro-export condition aimed at ensuring that investment contributes to Malaysia’s trade balance and global supply chain integration.
“It is not a restriction on total production but a strategic measure to encourage export orientation,” he clarified.
Johari also refuted claims that the ministry had compelled BYD to limit the sale of its vehicles to 20% locally, and at prices above RM200,000.
“This is inaccurate. The condition imposed is a minimum on-the-road (OTR) price of RM100,000 for BYD’s CKD vehicles sold domestically.
“This ensures local assembly focuses on higher-value segments, preserving market space for national players while still offering affordable EV solutions,” said Johari.
On the requirement that imported completely built-up (CBU) EVs be priced above RM250,000, he said the sum is the standard minimum OTR cost for all passenger vehicles imported into the country under the Approved Permit Franchise policy.
“We introduced a temporary relaxation from 2022 until Dec 31, 2025, to encourage early-stage EV adoption.
“The government reduced the minimum OTR specifically for CBU EVs to RM100,000,” he added.
As at December last year, 14 out of 34 foreign automotive brands in the market were Chinese brands like BYD, Chery, Jaecoo, Jetour, Haval, Wey, MG and Volvo.
The ministry’s approach focuses on development rather than protectionism, Johari said.
“We remain genuinely open to Chinese automotive investment.
“In 2025, BYD and Chery Automobile Co Ltd were granted an interim manufacturing licence on Sept 29 and June 26, respectively.
“These approvals to manufacture the vehicles locally show that our policy is not to create a barrier to entry; it is a framework for meaningful, high-value participation from foreign investors,” he said, adding that there is no ban on the importation of new pick-up truck models.
“Commercial vehicles, including pickup trucks, are subject to CKD localisation requirements.
“CBU imports are permitted with a limited quota under the Market Research Pre-Assembly Approved Permit quota,” he said.
