BYD Chooses Inokom to Assemble Electric Vehicles in Malaysia

BYD Malaysia has chosen Inokom Corporation, a subsidiary of Sime Motors, as its contract assembly partner to build completely knocked-down vehicles. The companies formalized the agreement by signing a memorandum of understanding at BYD global headquarters in Shenzhen, China. Liu Xueliang, vice president of BYD and general manager of the BYD Asia Pacific Auto Sales Division, signed alongside Sime group chief executive officer Dato' Jeffri Salim Davidson. BYD Malaysia managing director Jacob Ma and Sime Motors Southeast Asia managing director Jeffrey Gan witnessed the ceremony.

BYD selected Inokom after evaluating domestic market conditions and local manufacturing capabilities. Using Inokom's existing Kulim facility in Kedah allows BYD to draw on an established workforce and local supply chain without constructing its own manufacturing plant. The decision follows a September report by Nikkei Asia that BYD had set aside plans for its own factory in Malaysia in favor of a local partner. Both companies noted that exact launch schedules and vehicle details for the assembly program will be released later.

National manufacturing mandates

Transitioning to local assembly helps automakers satisfy national manufacturing mandates enforced by Malaysia's Ministry of Investment, Trade and Industry. These regulations require foreign electric vehicle makers to establish domestic assembly operations or partner with local industrial groups for long-term market access. Local production also allows manufacturers to lower retail prices through reduced tariffs and reduced shipping expenses. Under its National Energy Transition Roadmap, Malaysia aims for electric vehicles to reach 15 percent of total industry volume by 2030 and 38 percent by 2040, compared to between 3 percent and 5 percent today.

BYD entered the Malaysian market in December 2022 by introducing the Atto 3 crossover. Distributed through Sime Motors subsidiary Beyond Auto, the brand currently holds between 40 percent and 44 percent of Malaysia's total pure electric passenger car sales. Alongside the Atto 3, its Malaysian vehicle lineup features the Dolphin hatchback, the Seal mid-size sedan, the Sealion 7 crossover, and the M6 multi-purpose vehicle.