BYD to Assemble Vehicles in Malaysia With Inokom

BYD Malaysia has selected Inokom Corporation Sdn. Bhd. as its local assembly partner, marking a significant step in the Chinese automaker’s strategy to manufacture electric vehicles domestically within the Southeast Asian nation.

What Happened

The collaboration was formalized through the signing of a Memorandum of Understanding at BYD’s global headquarters in Shenzhen, China. Liu Xueliang, Vice President of BYD and General Manager of BYD Asia Pacific Auto Sales Division, and Dato’ Jeffri Salim Davidson, Group Chief Executive Officer of Sime, signed the agreement. The selection of Inokom, a subsidiary of Sime Motors based in Kulim, Kedah, followed an evaluation of domestic manufacturing capabilities. BYD leadership stated that localized assembly reflects a long-term commitment to the Malaysian market, aiming to integrate their new energy vehicle and battery technology expertise into the local sector.

Why It Matters

This move allows BYD to comply with regulatory guidelines from Malaysia’s Ministry of Investment, Trade and Industry, which require foreign EV manufacturers to establish domestic assembly or partner with local groups to maintain long-term market access. By utilizing Inokom’s existing infrastructure, BYD avoids the cost of building new plants while positioning itself to optimize retail pricing through tariff reductions and lower transport dependencies. Currently, BYD holds the largest share of Malaysia’s electric vehicle segment, accounting for roughly 40 percent to 44 percent of total pure electric passenger car sales, with models like the Atto 3 and Dolphin distributed through Sime Motors.

The Bottom Line

BYD’s partnership with Inokom supports Malaysia’s National Energy Transition Roadmap, which targets a 15 percent EV penetration rate by 2030 and 38 percent by 2040. Further specifics regarding the local assembly program are expected to be disclosed at a later date.