BYD Malaysia appoints Inokom for local CKD vehicle assembly

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BYD Malaysia appoints Inokom for CKD

Highlights

BYD Malaysia has signed a memorandum of understanding with Inokom Corporation, a Sime Darby subsidiary, for the local assembly of CKD vehicles in Kulim, Kedah.
The collaboration follows BYD's decision to cancel plans to build a plant in Tanjung Malim due to export requirements imposed by the Ministry of Investment, Trade and Industry.
BYD's local assembly rollout is expected to strengthen Malaysia's automotive ecosystem, although details on the models and production timeline have yet to be announced.

This article was translated from the original. Read the original version by our correspondent here.

Assembly agreement and scope of collaboration

As reported by The Edge Malaysia, BYD Malaysia said in a statement on Thursday that the collaboration was formalised through a memorandum of understanding signed at the company's global headquarters in Shenzhen, China.

Inokom Corporation Sdn Bhd, a Kulim, Kedah-based subsidiary of Sime Darby Bhd, was selected following an assessment of local market conditions and manufacturing capabilities. BYD Malaysia said Inokom's existing facilities, workforce and supply chain support its local assembly operations plan.

BYD Malaysia managing director Jacob Ma said local assembly is an important part of the company's long-term commitment to Malaysia. He said the collaboration with Sime to assemble vehicles at Inokom allows BYD to leverage existing automotive manufacturing capabilities while bringing the company's expertise in new energy vehicles and battery technology closer to the Malaysian market.

Implications for Malaysia's automotive industry

The appointment follows reports that BYD scrapped plans to build an assembly plant in Tanjung Malim, Perak, due to Ministry of Investment, Trade and Industry requirements that up to 80% of vehicles produced there be exported, while the remaining 20% must be sold at more than RM200,000 per unit.

Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said the collaboration has the potential to strengthen the local automotive ecosystem, support businesses and further develop Malaysia's manufacturing capabilities. The memorandum of understanding was signed by BYD vice president Liu Xueliang and Jeffri, with Jacob Ma and Sime Motors Southeast Asia managing director Jeffrey Gan witnessing the ceremony.

Details on the models to be assembled and the production timeline have yet to be announced.

In our earlier coverage of China's proposal to expand technology and knowledge transfer to Malaysia, we reported that the collaboration also covered joint projects such as the ECRL and the electric vehicle sector. We also highlighted China's willingness to explore new financing for high-impact projects and how bilateral relations are increasingly shifting from conventional investment towards deeper technology collaboration.

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