BYD is reassessing its plans to open a CKD vehicle assembly plant in Tanjung Malim, according to a report by The Edge. This is due to conditions imposed by the Ministry of Investment, Trade and Industry (MITI) such as 80% of the assembled vehicles must be exported and the selling price of BYD vehicles in Malaysia must be more than RM200,000 each. BYD reportedly disagreed with the conditions imposed by MITI.
In the same report, MITI Minister Johari Abdul Ghani stressed that the conditions were imposed to protect the local automotive ecosystem that supports more than 700,000 workers. Proton and Perdoua currently have 50% locally made content, which is the backbone of the country's automotive industry supply chain.
Despite the increasing number of vehicles, especially EVs from China, entering Malaysia in recent times, Proton and Perodua still hold over 60% of the local market. Since January this year, tax incentives for completely imported EVs (CBU) have been terminated and are now subject to 30% import duty, 10% excise duty and 10% sales tax.
