BYD Malaysia CKD factory established in Tanjung Malim, production to start in 2026

[PCauto] On August 22, 2025, BYD officially announced through its Malaysian official distributor, BYD Sime Motors, that it will invest in building a local assembly (CKD) plant in the KLK Technology Park in Tanjung Malim, Perak. The plant is expected to commence production in 2026.

This plant, covering an area of 150 acres (approximately 600,000 square meters), will adopt a completely knock-down assembly mode, with complete kits imported from China for localized production in Malaysia.

BYD to be the primary tenant for the first phase of KLK Technology Park in Tanjung Malim

The plant will be located in the KLK Technology Park in Tanjung Malim, which is positioned as Malaysia’s premier automotive hub. The entire park is planned over 1,500 acres, with BYD as the primary tenant of the first phase, enjoying land, logistics, and other supporting resources.

With the CKD model, BYD can significantly reduce production costs, circumvent potential tariff barriers, and take advantage of policy incentives provided by the Malaysian government. These include exemption from consumption tax and sales tax until 2027, full exemption from import duties on parts, and a “10-year tax holiday” on corporate income tax.

These measures translate directly into price competitiveness. Taking the Atto 3 as an example, the locally assembled version is expected to be 15%-20% cheaper than the imported version, enhancing the attractiveness of the product in the market.

This plant will be BYD’s fourth production base in Southeast Asia

This BYD plant in Malaysia’s KLK Technology Park, together with factories in Rayong, Thailand; Subang Smart City, Indonesia; and Cambodia, forms a regional manufacturing network supporting its “72-hour delivery zone” strategy.

By producing locally, BYD can reduce vehicle transportation costs by over 30%, respond to market demands more quickly, shorten delivery times, and enhance customer satisfaction.

The Malaysian market is crucial for BYD. In 2024, its pure electric vehicle models maintained the top spot in the market with 8,570 registrations, capturing nearly 31% market share. Models like Atto 3 and Dolphin performed exceptionally well. Local assembly will further pave the way for hybrid models, and it is expected that models equipped with DM-i technology will be rapidly launched via the CKD mode after 2026, aiming to capture the traditional fuel vehicle replacement market dominated by Japanese brands.

BYD's product line continues to expand in Malaysia

The Seal model has been introduced to the market and became the best-selling electric sedan locally in 2024. The new version offers a Premium variant and a Performance variant, with starting prices of 171,800 MYR and 191,800 MYR, respectively.

The sales network continues to expand, with the number of outlets reaching 43. The scale will further grow in the future to enhance market coverage and service capabilities.

Deep collaboration with Sime Auto is key to localization. As Malaysia’s largest automotive dealer group, Sime is responsible for building the sales network and managing the supply chain. In 2024, the two parties also signed an agreement to introduce the Denza brand, forming a full-category coverage matrix.

This factory holds significant economic value for Malaysia

The Perak state government regards it as a milestone in the transformation of the automotive industry. It is expected to create thousands of direct job opportunities, drive the development of related industries, and promote economic prosperity.

Currently, the Malaysian auto parts market is dominated by Japanese companies, but BYD’s presence might trigger a restructuring of the supply chain. Referring to the localization rate of 40% achieved at its factory in Thailand, the future may see the introduction of Chinese auto parts companies, gradually breaking the Japanese monopoly. This "technology for market" strategy is reshaping the automotive industry landscape in Southeast Asia, driving Tanjung Malim's transformation from a traditional industrial area to an intelligent automotive eco-city.

Mr. Liu Xueliang, General Manager of BYD Asia-Pacific Automotive Sales Division, stated that Malaysia is one of BYD's most important markets in Southeast Asia. The construction of the CKD factory demonstrates confidence in deeply cultivating the local market. In the future, BYD will invest in talent development and the promotion of electric mobility to support Malaysia's transition to green and intelligent transportation.

Under the globalization strategy, BYD's sales in international markets outside of China surpassed 470,000 units in 2024, an increase of 132% year-on-year. The Malaysian factory will become a key pillar for BYD's goal of "5 million overseas units," with an expected contribution of tens of thousands of units in production capacity.