BYD Malaysia has appointed Inokom Corporation Sdn Bhd, a subsidiary of Sime Darby Bhd, as its local assembly partner for planned completely knocked-down (CKD) vehicle operations in Malaysia.
The companies formalised the partnership through a memorandum of understanding signed at BYD’s global headquarters in Shenzhen, China, according to a statement issued by BYD Malaysia on Thursday.
The appointment followed an assessment of local market conditions and manufacturing capabilities. Inokom, based in Kulim, Kedah, will contribute its existing manufacturing facilities, workforce and supply chain to support the planned assembly operations.
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The companies have not disclosed which models will be assembled locally or when production is expected to begin.
Local Assembly Plans
The agreement follows reports that BYD had dropped plans to build its own assembly plant in Tanjung Malim, Perak. Those reports cited conditions set by Malaysia’s Ministry of Investment, Trade and Industry that would require up to 80% of vehicles produced at the proposed facility to be exported, while the remaining 20% would need to be priced above RM200,000 each.
BYD Malaysia managing director Jacob Ma said the Inokom partnership would support the company’s plans for local assembly.
“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. We aim to bring BYD’s expertise in new energy vehicles and battery technologies closer to the Malaysian market while contributing to the continued development of the local automotive industry,”
Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said the partnership could support the local automotive supply chain, businesses and Malaysia’s manufacturing capabilities.
Agreement Signed in Shenzhen
The memorandum of understanding was signed by BYD vice-president Liu Xueliang and Jeffri Salim Davidson. BYD Malaysia managing director Jacob Ma and Sime Motors Southeast Asia managing director Jeffrey Gan attended as witnesses.
The agreement establishes a framework for cooperation on local assembly, but further details about investment, production capacity, vehicle specifications and the implementation schedule have not been announced.
The planned arrangement would use Inokom’s existing manufacturing infrastructure rather than rely on a newly built BYD assembly plant. The companies have yet to confirm the scope of local production or whether additional facilities and investments will be required.