BYD and Bus Cap Explore Electric Bus Assembly in Malaysia

BYD is expanding its localization efforts for commercial electric vehicles in Malaysia through a partnership with local bus manufacturer Bus Cap Berhad. The companies have signed an exclusive memorandum of understanding to explore electric bus assembly and manufacturing in the country.

The agreement was signed in Shenzhen on Aug. 18. The initial focus will be on local assembly and production of electric buses, with Malaysia also intended to serve as a base for broader commercial new energy vehicle cooperation in Southeast Asia.

Companies Assess Local Manufacturing

Under the memorandum, BYD Malaysia Sdn Bhd and Bus Cap plan to cooperate on product localization, sales models and after-sales services. They will also assess the establishment of electric bus assembly and manufacturing facilities in Perak.

Bus Cap is headquartered in Ipoh, Perak, and operates through its subsidiary Sin Hock Leong Coach Works Sdn Bhd, which has operated in Malaysia since 1968.

The companies have not disclosed a production capacity or timeline for a potential facility.

Luo Zhongliang, BYD group vice president and general manager of Division 15 and the commercial vehicle division, said the agreement would support BYD’s assessment of local opportunities for electric commercial vehicles.

BYD plans to develop and produce different types of new energy buses according to local requirements and use Malaysia as a base for further expansion in Southeast Asia, he said.

Focus on Electric Public Transport

The proposed cooperation is aligned with Malaysia’s National Energy Transition Roadmap and the country’s efforts to electrify public transportation, according to the companies.

Bernard Ng Chong Yan, executive director of Bus Cap, said the partnership would provide a foundation for electric bus assembly, manufacturing and deployment in Malaysia.

The companies have not yet announced specific electric bus models that would be assembled locally.

BYD Builds Southeast Asian Manufacturing Presence

BYD entered Malaysia in 2014, initially using commercial vehicles as its entry point. The company has previously assembled electric buses in the country under a completely knocked-down model.

BYD is also developing its passenger vehicle manufacturing presence in Malaysia. In August 2025, the company announced plans for a passenger vehicle assembly plant expected to begin production in 2026, although no further update on the project was provided in the latest announcement.

Elsewhere in Southeast Asia, BYD began production at its Thailand plant in July 2024.

The proposed Malaysian electric bus cooperation would therefore add another potential manufacturing base for BYD’s commercial new energy vehicle operations in the region.