BYD Malaysia Partners with Inokom for Local Vehicle Assembly

KUALA LUMPUR — BYD Malaysia has officially appointed Inokom Corporation Sdn Bhd, a subsidiary of Sime Darby Bhd, as its local assembly partner for electric vehicles in Malaysia. This partnership was formalized through a memorandum of understanding (MoU) signed at BYD's global headquarters in Shenzhen, China.

The decision to collaborate with Inokom follows a thorough assessment of local market conditions and manufacturing capabilities. BYD noted that Inokom's established facilities, skilled workforce, and existing supply chain infrastructure will support its plans for completely knocked-down (CKD) vehicle assembly operations in Malaysia. The move is seen as a strategic pivot after BYD previously abandoned plans to build a standalone assembly plant in Tanjung Malim, Perak, due to regulatory conditions set by the Ministry of Investment, Trade and Industry, which required a significant portion of production to be exported.

“Local assembly is an important part of BYD’s long-term commitment to Malaysia.”Jacob Ma, Managing Director, BYD Malaysia

Jacob Ma, Managing Director of BYD Malaysia, emphasized the significance of local assembly as part of the company's long-term commitment to the Malaysian market. “Partnering with Sime to assemble at Inokom allows us to build on established automotive manufacturing capabilities as we progress our local assembly plans,” he stated. Ma added that the collaboration aims to bring BYD's expertise in new energy vehicles and battery technologies closer to Malaysian consumers while contributing to the local automotive industry's development.

“Our experience in vehicle assembly, supported by an established workforce and local supply chain, provides a strong foundation for this collaboration.”Jeffri Salim Davidson, CEO, Sime Darby Group

Jeffri Salim Davidson, CEO of Sime Darby Group, highlighted that this partnership reflects the strength of Malaysia’s automotive manufacturing capabilities. He remarked, “Our experience in vehicle assembly, supported by an established workforce and local supply chain, provides a strong foundation for this collaboration.” Davidson also noted that the initiative could bolster Malaysia’s automotive ecosystem, support local businesses, and enhance industry capabilities for long-term growth.

While the MoU has been signed, details regarding the specific models to be assembled at Inokom and the timeline for production have not yet been disclosed. According to Nikkei Asia, this decision to partner with Inokom allows BYD to bypass various taxes and maintain competitiveness as competition in the electric vehicle market intensifies.

Indonesian coverage of this development has stressed the importance of local assembly in enhancing BYD's market presence in Southeast Asia, while Malaysian outlets have framed the partnership as a testament to the country's robust automotive manufacturing capabilities. This divergence highlights how each country perceives the implications of the collaboration, with Indonesia focusing on regional market strategy and Malaysia emphasizing domestic industrial strength.