BYD Malaysia confirms plans for new CKD plant in Tg Malim – production to start in second half of 2026

BYD Malaysia has officially confirmed plans to set up a local assembly (CKD) plant located in Tanjong Malim, Perak. Occupying an area of 600,000 square metres, the new facility (100% invested by BYD) is expected to begin vehicle production in the second half of 2026, although the company is not mentioning what model will be the first to roll off the line for now.

UPDATE: KLK Land has issued a press release that revealed BYD Malaysia’s CKD plant will be built at KLK TechPark. Additionally, the Perak state government has also revealed timelines for the plant, and this post has been updated with the new information.

At present, BYD sells six models in Malaysia, all of them fully electric and imported from China. With the ongoing government incentives for EVs, these CBU models are currently exempted from import duty and excise duty, although they won’t be for long as the exemption only lasts until December 31, 2025.

BYD’s CKD plant in Malaysia will be built at KLK Land, a 1,500-acre integrated industrial hub envision as a hub for advanced manufacturing and green technology. BYD is the anchor tenant of the development’s first phase and will take up 150 acres.

Separately, Perak tourism, industry, investment and corridor development committee chairman, Loh Sze Yee, said that land approval had been initiated since last May, with preliminary work starting in July, the Malay Mail reports. He added that construction of the factory is expected to commence at the end of August, with the launch ceremony to be officiated by menteri besar Datuk Seri Saarani Mohamad on September 4.

With a local CKD plant, BYD will be able to benefit from incentives applied to CKD EVs, which are exempt from excise duty and sales tax until December 31, 2027. This also opens up the possibility of plug-in hybrid (PHEV) models being introduced here, which could get incentives under the proposed New Customised Incentive Mechanism (NCM).

“Malaysia has always been one of BYD’s most important markets in Southeast Asia, and today’s dual announcement of CKD and the new BYD Seal marks a new chapter in our journey here. With the strong support of Sime Motors, we are confident in deepening our roots in Malaysia and bringing world-class EV technology closer to local customers,” said Liu Xueliang, general manager of BYD Asia Pacific auto sales division.

“This commitment is not only about delivering innovative products, but also about investing in the future of Malaysia’s EV ecosystem – from local assembly, to talent development, and electric mobility. Together, we look forward to accelerating Malaysia’s transition towards a greener and smarter transportation future, with BYD standing as a long-term partner to the nation,” he added.

“Today’s launch builds on the success of the BYD Seal, which was Malaysia’s best-selling electric sedan in 2024. With the updated model, we are confident it will continue to attract a wide range of Malaysian customers with its enhanced features. Together with the CKD production plan, this further reinforces our position as the number one BEV brand in Malaysia,” commented Jeffrey Gan, Sime Motors managing director for Southeast Asia.

With this announcement, BYD is poised to join a number of brands that assemble EVs in Malaysia, including Volvo, Mercedes-Benz and Chery. Meanwhile, other brands that have expressed or are currently in the midst of carrying out plans to locally assemble EVs here include Proton, Leapmotor, TQ Wuling and Volkswagen.

Despite Tanjong Malim being synonymous with Proton – the Malaysian Automotive Association (MAA) lists the local carmaker as the only one with a base in the town currently – the new BYD CKD plant will be built on a separate piece of land, unrelated to DRB-Hicom’s Automotive Hi-Tech Valley (AHTV) project.