BYD Malaysia has appointed Inokom Corporation Sdn Bhd, a subsidiary of Sime Motors, as its local assembly partner, marking a key step towards assembling the Chinese automaker’s vehicles in Malaysia.
The partnership was formalised through a Memorandum of Understanding (MoU) signed at BYD’s global headquarters in Shenzhen, China. Further details, including the models to be assembled and the timeline for local production, will be announced in due course.
Based in Kulim, Kedah, Inokom brings existing vehicle assembly facilities, an experienced workforce and established manufacturing capabilities to the partnership.
BYD Malaysia said the appointment followed an assessment of the local market and available manufacturing capabilities, with Inokom’s existing operations providing a foundation for its planned completely knocked-down (CKD) vehicle assembly programme.
“Local assembly is an important part of BYD’s long-term commitment to Malaysia. Partnering with Sime to assemble at Inokom allows us to build on established automotive manufacturing capabilities as we progress our local assembly plans,” said Jacob Ma, Managing Director of BYD Malaysia.
He added that the company aims to bring BYD’s expertise in new energy vehicles and battery technologies closer to Malaysian customers while contributing to the development of the local automotive industry.
The move also marks another step in BYD’s expansion in Malaysia alongside its local distributor and retail partner, BYD Sime Motors.
Sime’s involvement gives BYD access to an established automotive manufacturing operation, while potentially creating opportunities for local suppliers and businesses to participate in the expanding electric vehicle ecosystem.
Dato’ Jeffri Salim Davidson, Group Chief Executive Officer of Sime, said the partnership reflects the strength of Malaysia’s automotive manufacturing capabilities and Inokom’s experience in vehicle assembly.
“Beyond vehicle assembly, partnerships such as this create opportunities to strengthen Malaysia’s automotive ecosystem, support local businesses and develop capabilities that can contribute to the industry’s long-term growth,” he said.
The MoU was signed by Liu Xueliang, Vice President of BYD and General Manager of BYD Asia Pacific Auto Sales Division, and Dato’ Jeffri Salim Davidson. The signing was witnessed by representatives including Jacob Ma and Jeffrey Gan, Managing Director of Southeast Asia at Sime Motors.
BYD’s move towards local assembly comes as the company continues to build its presence in Malaysia’s increasingly competitive electrified vehicle market.
However, the announcement does not yet confirm which BYD models will be assembled at Inokom, when production will begin, or whether local assembly will lead to changes in vehicle pricing.
Those details will be important in determining how the partnership translates into benefits for Malaysian buyers and the wider automotive supply chain.
CarTok Editor’s Note
BYD’s move towards local assembly aligns with the government’s push to strengthen domestic automotive manufacturing, particularly as policies make importing new vehicles less attractive. For automakers seeking to sustain growth in Malaysia, local assembly is a way to establish a longer-term presence in the market.
Inokom gives BYD access to existing facilities and manufacturing expertise, while potentially creating opportunities for local suppliers and workforce development.
However, CKD assembly does not automatically mean significantly lower prices. The outcome depends on production volumes, localisation levels, component sourcing and the economics of the overall operation.
How well this works for Malaysia will be determined by how successful these assembly investments can be turned into deeper local industrial capabilities, instead of just becoming a place to put together imported components.
