Cover image via XY/Cfoto/AFP
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If you've been following the news around BYD's planned manufacturing plant in Malaysia, chances are you've come across some alarming claims
Claims circulating online include that BYD is reconsidering its investment, that locally-made BYDs will be priced out of reach, or that the government has effectively banned new pickup truck brands from entering the market.
In September 2025, the Ministry of Investment, Trade, and Industry (MITI) approved an interim Manufacturing License for BYD Automotive Malaysia to locally assemble Electric Vehicles (EVs) and Plug-In Hybrid Electric Vehicles (PHEVs) at a plant in Tanjung Malim, Perak. The approval came with specific conditions, and it's those conditions that have been the subject of much debate online.
Yesterday, 31 March, MITI released an official statement addressing these claims directly.
Here's what you need to know.
What's been claimed, and what MITI said
Claim: BYD is reconsidering its investment due to unfavourable conditions.
MITI said the conditions attached to BYD's licence are not unique to the company; they apply equally to all new automotive manufacturers seeking to assemble vehicles in Malaysia from September 2025 onwards.
The conditions are designed to align with the National Automotive Policy (NAP) and the New Industrial Master Plan 2030 (NIMP 2030), with a focus on export-oriented production, local supply chain integration, and technology transfer.
Claim: 80% of BYD's production must be exported, leaving very little for the local market.
Technically, the numbers check out, but MITI frames it differently.
The licence caps domestic sales at 10,000 units per year, which represents 20% of BYD's projected production capacity. MITI describes this as a "mutually agreed production framework" aimed at encouraging export integration, rather than a restriction on BYD specifically.
Claim: Locally-assembled BYDs must be priced above RM200,000.
MITI flatly denies this.
The actual minimum On the Road (OTR) price for BYD's locally-assembled CKD vehicles sold domestically is RM100,000, not RM200,000.
The higher figure appears to have been confused with the separate minimum price for fully imported (CBU) passenger vehicles, which stands at RM250,000 under the AP Franchise policy.
It's worth noting that the RM250,000 CBU floor price was temporarily reduced to RM100,000 for electric vehicles between 2022 and the end of 2025, as a deliberate measure to stimulate early EV adoption. That relaxation has since lapsed, though MITI says it is currently reviewing the policy.
Claim: MITI banned new pickup truck brands from entering Malaysia.
MITI says this is inaccurate.
There is no ban on importing new pickup truck models.
Vehicles like the BYD Shark and GWM Cannon are subject to CKD localisation requirements, and CBU imports remain permitted under a limited quota through the Market Research Pre-Assembly (MRA) Approved Permit system.
A BYD booth at the 2026 Appliance & Electronics World Expo in Shanghai, China.
Image via XY/Cfoto/AFPSo what does this mean for buyers?
If you're considering a locally-assembled BYD, the minimum price point starts at RM100,000, making it more accessible than the rumoured figure. That said, the 10,000-unit annual cap on domestic sales may limit availability depending on demand.
More broadly, the government's conditions signal that its priority is building Malaysia into a regional EV manufacturing and export hub, rather than simply opening the domestic market to foreign brands. Manufacturers are expected to invest in local assembly, supply chain development, and technology transfer — not just set up shop to sell to Malaysian consumers.
MITI also took the opportunity to push against the perception that its policies are protectionist
The statement cited Chery Automobile, which received its own Manufacturing License in June 2025, as evidence that Chinese automakers are welcome, provided they commit to meaningful local participation.
MEDIA STATEMENT: MITI REAFFIRMS COMMITMENT TO SUSTAINABLE AUTOMOTIVE GROWTH; CLARIFIES BY INVESTMENT AND SECTOR POLICIES#MalaysiaMADANI#MITIMalaysia#ThisIsWhereGlobalStarts
— MITI Malaysia (@MITIMalaysia) March 31, 2026
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