BYD has entered into a partnership with the contract manufacturer Inokom to assemble electric vehicles in Malaysia. The production will utilize the CKD (Completely Knocked Down) method, where vehicles are assembled locally from imported components. This agreement follows BYD's decision to abandon plans for constructing its own manufacturing facility in the country.
Inokom, a subsidiary of the Sime Darby conglomerate, operates a plant in Padang Meha, Kulim District, which has been active since 1997. The facility currently handles production for several brands, including BMW, where it has been assembling the all-electric i5 since January. Inokom also manages the distribution of BYD vehicles in Malaysia through its division, Sime Motors.
The shift toward local assembly follows the introduction of stricter import regulations in Malaysia on 1 July 2026. Under the new rules, fully assembled electric vehicles imported from abroad must have a CIF value of at least MYR 200 000 and a minimum engine power of 180 kW. These requirements effectively restrict the import of more affordable models.
The new regulations have impacted BYD's current inventory, as the company is currently selling off remaining imported units of the Atto 3 and Sealion 7 models. Because these vehicles do not meet the new price and power thresholds, they are no longer eligible for import as fully assembled units. These models are now considered primary candidates for future local assembly at the Inokom plant.
