The Ministry of Investment, Trade and Industry (Miti) has stepped forward to address recent online claims regarding BYD’s potential reevaluation of its local assembly plant plans in Tanjung Malim, Perak.
Investment, Trade and Industry Minister Johari Ghani clarified that several reports circulating online concerning the manufacturing licence conditions for the Chinese electric vehicle (EV) maker were inaccurate and had caused public confusion.
He confirmed that BYD was granted an interim manufacturing licence in September 2025 for an assembly plant focused on export-oriented production.
Standardized framework for new entrants
Johari Ghani explained that the conditions attached to the licence are aligned with the National Automotive Policy and the New Industrial Master Plan 2030. These measures aim to promote high-value industrial activities and prevent market distortion within the country.
He emphasized that these requirements are not unique to BYD. Instead, they represent a consistent policy applied to all new automotive investments in Malaysia effective from September 2025, with the exception of those utilizing existing local assembly facilities.
Specific conditions for BYD’s licence include a domestic sales volume of 10,000 units or 20% of the plant’s total production capacity. Furthermore, these vehicles must maintain a minimum on-the-road price of RM100,000.
The minister dismissed claims that domestic sales were capped at 20% or that prices must exceed RM200,000 as false. He described the arrangement as a mutually agreed production framework rather than a restriction.
Protecting the local vendor ecosystem
The minister further noted that these non-discriminatory conditions apply to all high-volume assembly projects regardless of their country of origin. The strategy is intended to move local assembly toward sustainable, higher-value market segments while protecting the established local vendor ecosystem.
Johari Ghani stated that the policy ensures new entrants contribute to the local economy rather than displacing existing players. He reiterated that BYD has not been singled out, as the same rules apply to any new completely knocked-down (CKD) entrant.
Regarding the floor price for electric vehicles, he noted that the current approved permit (AP) franchise policy typically requires imported completely built-up (CBU) vehicles to be priced at a minimum of RM250,000.
However, the government lowered this floor price to RM100,000 between 2022 and the end of 2025 to encourage EV adoption. This window was designed to give local carmakers time to develop their own EV capabilities and supply chains.
Miti is currently reviewing this floor price policy. The goal is to strengthen local assembly activities and ensure that vehicle pricing is eventually driven by market forces, moving away from a reliance on perpetual CBU imports.
Clarification on pick-up truck imports
The minister also denied allegations that Miti had banned the import of new pick-up truck models such as the BYD Shark or GWM Cannon. He clarified that all commercial vehicles are subject to CKD localisation requirements.
While CBU imports are allowed under limited quotas for market research and pre-assembly purposes, there has been no official announcement banning new pick-up truck brands from entering the Malaysian market.
Johari Ghani argued that Miti’s framework is developmental rather than protectionist. He suggested that investments lacking clear export commitments or localisation plans provide limited benefits to the Malaysian automotive ecosystem.
Malaysia remains genuinely open to automotive investments from China, as evidenced by the fact that 14 of the 34 foreign carmakers in the local market are Chinese brands. He cited the granting of a manufacturing licence to Chery Automobile Co Ltd in June 2025 as further proof that the policy framework is not a barrier to entry.
The minister concluded by stating that Malaysia is an ideal destination for manufacturers looking to build an export-oriented presence in Southeast Asia, supported by a technically capable, English-speaking workforce and a transparent regulatory environment.
