BYD Cancels Tg Malim Plant, Opts for Local CKD Partner

BYD Malaysia, the Malaysian division of Chinese electric vehicle (EV) manufacturer BYD, has announced the cancellation of its planned CKD (Completely Knocked Down) assembly plant in Tanjong Malim, Perak, and will instead proceed with local assembly through an established Malaysian contract-assembly partner. The decision, confirmed by BYD Malaysia Managing Director Jacob Ma on 10 September 2026, maintains the company's commitment to local manufacturing while aligning with the Malaysian Ministry of Investment, Trade and Industry's (MITI) preference for collaborations with domestic partners. This strategic pivot affects the company's EV distribution and assembly strategy for the Malaysian market.

Key Facts

**BYD Malaysia has cancelled its Tanjong Malim CKD plant and is pursuing a local contract assembly partnership, a decision confirmed on 10 September 2026.**

Source figures based solely on the paultan.org article dated 11 September 2026. No vehicle pricing, dimensions, or performance specifications were disclosed in the source material.

Why Did BYD Cancel the Tanjong Malim Plant?

**BYD cancelled the Tanjong Malim plant because the company is switching to a contract-assembly model with an existing local partner, preferring collaboration over constructing its own factory.** According to BYD Malaysia MD Jacob Ma, the facility "will not proceed," but the company's "commitment to local assembly remains." The decision follows a visit by BYD vice-president Liu Xueliang to the Sime Motors Inokom plant in Kulim, Kedah in May 2026, which strongly suggested Sime Motors would become the local assembly partner. MITI has preferred EV makers to work with Malaysian partners rather than build new factories, supporting this direction.

"To clear the air on this, the Tanjong Malim facility will not proceed. However, this decision does not mean that BYD has cancelled its plans for local assembly in Malaysia. Our commitment to local assembly remains."

— Jacob Ma, Managing Director, BYD Malaysia, at the BYD Atto 3 Performance launch, 10 September 2026

This approach aligns with MITI's preference for EV makers to collaborate with local partners rather than construct new manufacturing facilities. The change was revealed during the launch of the BYD Atto 3 Performance on 10 September 2026.

**BYD's plan for its own RM-denominated CKD facility in Tanjong Malim was first confirmed in August 2025, but no construction timeline or investment figure was made public at that time.**

Who Is the Local CKD Partner?

**The likely local CKD partner is Sime Motors, operating through the Inokom plant in Kulim, Kedah, based on official visits in May and recent executive meetings.** On 10 September 2026, Jacob Ma stated that BYD is "working with an established local assembly partner that has the capacity and the capabilities to meet BYD's requirements." He added that "discussions are already at a very advanced stage and we are finishing the necessary documentation, and we will make an official announcement once everything is in place." The evidence for Sime Motors includes Liu Xueliang's May 2026 visit to the Kulim plant, plus a recent visit by Sime Motors' leadership to BYD's Shenzhen headquarters for talks on "strategic priorities and areas of mutual interest."

**Sime Motors has not publicly confirmed the CKD arrangement, and no official contract has been announced as of the source publication date, 11 September 2026.**

Does This Affect BYD Vehicles in Malaysia?

**No, this announcement affects BYD's manufacturing strategy only—it does not change the availability of BYD vehicles currently sold in Malaysia, including the newly launched BYD Atto 3 Performance.** The BYD Atto 3 Performance was launched on the same evening as the announcement, indicating no disruption to the company's product pipeline. Jacob Ma stated that "Malaysia is an important market and strategic part of BYD's growth in the future" and that "we will continue to invest." The local assembly plan ensures CKD (Completely Knocked Down) production will still proceed, just through a different facility than originally planned in Tanjong Malim, Perak.

**BYD has not provided a timeline for when local CKD assembly will begin under the new partner arrangement.**

What Does "We Are Here to Stay" Mean for Malaysian Buyers?

**For Malaysian car buyers, "we are here to stay" signals that BYD is committing to a long-term local presence, with parts, assembly, and after-sales support being developed within Malaysia rather than relying solely on imported vehicles.** This is significant because a local CKD partner can reduce vehicle prices (through lower import duties on CKD kits) and improve supply chain reliability. The company is investing in local infrastructure, and Jacob Ma emphasised that "plans might evolve, locations might change, and strategies might be refined, but what remains constant is our commitment to this market."

**BYD's Malaysian commitment includes local assembly with a Malaysian partner, despite changing its facility location from Tanjong Malim, Perak to an undisclosed existing plant.**

How This Affects the Malaysian EV Market

**For Malaysian EV buyers, this development signals that BYD will maintain competitive pricing via local assembly, potentially reducing reliance on full imports and lowering costs for models like the Atto 3.** The switch to a contract-assembly model with an established partner like Sime Motors (likely at the Kulim plant) could accelerate production timelines compared to building a new factory from scratch. It also aligns with MITI's stated preference for foreign EV makers to work with local partners, which may facilitate smoother regulatory approvals for new models. From a consumer perspective, this means more BYD models may be available locally, with service networks expanding through the partner's existing dealership infrastructure.

**BYD's local assembly commitment, regardless of which factory it uses, is a positive signal for EV market growth, as it indicates long-term parts availability and service support in Malaysia.**

Common Questions

Is the Tanjong Malim BYD plant officially cancelled?

Yes. BYD Malaysia MD Jacob Ma confirmed on 10 September 2026 that "the Tanjong Malim facility will not proceed." This reverses the August 2025 announcement of a CKD plant in Tanjong Malim, Perak.

Will BYD still assemble cars in Malaysia?

Yes. BYD remains committed to local assembly, but through an established Malaysian CKD partner instead of its own factory. Discussions are "at a very advanced stage," with an official announcement expected once documentation is finalised.

Who is BYD Malaysia's new assembly partner?

The partner has not been officially named. However, Sime Motors is the leading candidate following a May 2026 visit by BYD vice-president Liu Xueliang to the Sime Motors Inokom plant in Kulim, Kedah.

Sources and Methodology

This article is based on a single primary source: the paultan.org article titled "BYD Tg Malim plant cancelled, to go with local CKD partner instead; 'we are here to stay' – BYD Malaysia MD," published on 11 September 2026. All quotes are attributed to Jacob Ma, Managing Director of BYD Malaysia. No other external sources were used. No currency conversion was necessary as the source did not list any prices in USD or RM. This article was last updated on [current date—insert today's date]. Information specific to Malaysia was verified against the paultan.org source, which is a recognised authority on Malaysian automotive news.