BYD shelves plans for local assembly plant in Tanjung Malim

BYD Malaysia has confirmed that it will not proceed with plans for a completely knocked-down assembly plant in Tanjung Malim, Perak.

However, managing director Jacob Ma said discussions on local assembly with vendors are at an advanced stage.

Ma said the decision was made following a change in strategy aimed at finding the most suitable solution for the local 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.

“Current vehicle stocks are sufficient, though supplies of certain models are limited. We are working closely with distributors to ensure customer needs can be fulfilled,” he was quoted by Harian Metro as saying at an event yesterday.

Ma said BYD had no immediate plans to import vehicles from Indonesia unless a particular model was unavailable in Malaysia and demand warranted it.

He said BYD’s production capacity planning should be viewed over the long-term, spanning 10 to 20 years, in line with the company’s strategy to develop greater manufacturing capacity in the region.

“BYD has 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,” he said.

On Sept 5, BYD vice-president Liu Xueliang said the company would continue exploring cooperation with local partners to support the development of Malaysia’s new energy vehicle industry.

BYD’s plans, particularly its local manufacturing strategy and potential partnerships, came under scrutiny after the company’s plans for a plant in Tanjung Malim appeared to have stalled in March.

The government later announced that fully imported electric vehicles must have a minimum import value of RM200,000 from July, following claims circulating on social media regarding conditions imposed on BYD’s manufacturing licence and other related policies.

In May, it was reported that BYD was evaluating a potential contract assembly partnership with Sime Motors’ Inokom plant in Kulim, Kedah, as the Chinese company reviewed its local manufacturing strategy in Malaysia.

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