China Goes Global As Geely, Chery and BYD Plant Roots in Malaysia

The Chinese EV industry’s investment at home has plunged sharply. Domestic commitments fell to just US$15 billion (RM71 billion) in 2024, down from US$41 billion (RM193.6 billion) the year before and a peak of more than US$90 billion (RM424 billion) in 2022, according to CNBC citing Rhodium Group data.

For the first time, overseas spending “narrowly surpassed” domestic levels last year, marking a clear shift in where Chinese automakers are placing their bets. This comes even as Beijing grows more cautious about capital and technology outflows in strategic sectors.

Rhodium noted that automotive was the second-most active sector for Chinese outbound investment in the Q2 of 2024, just behind materials and metals.

EV suppliers in particular were unusually active, with eight deals worth more than US$100 million (RM472 million) each. The largest came from GEM, a battery materials maker, which committed US$293 million (RM1.3 billion) to expand its ternary precursors facility in Indonesia.

Several of the bigger projects have already started running. Great Wall Motor (GWM) opened its first plant in Brazil, while BYD began production at its Brazilian facility in July after earlier labor disputes. In Europe, battery supplier Envision switched on its first French factory in June.

Still, the overall picture remains patchy. Rhodium found that only 25% of planned overseas factories have been completed so far, compared with 45% of projects in China. Overseas plants are also twice as likely to be cancelled, underlining the risks Chinese firms face in their global push.

Malaysia is now emerging as part of this broader shift. BYD recently announced that it has “Seal”-ed a deal (no pun intended) with Kuala Lumpur Kepong (KLK) to build a 600,000 sq-m CKD facility in Tanjung Malim, set to begin operations in H2 2026. 

The investment was wrapped up in just three months, helped by the Muallim Speed-Lane (M-SL) initiative launched in 2023 to fast-track projects and put the district on the automotive map.

In the same town, Proton’s Automotive Hi-Tech Valley (AHTV) is close to completion, with production of the e.MAS 7 and 5 scheduled to start in Sept 2025. Backed by RM32 billion in investment from both local and foreign players, AHTV aims to build a full supply chain ecosystem to support Proton and, eventually, other right-hand-drive Geely models.

Chery is also expanding, with work underway on its Smart Auto Industrial Park at the Beringin High-Tech Auto Valley in Selangor. The project, worth RM2.2 billion, covers more than 800,000 sq-m and will sit alongside Chery’s existing CKD operations in Kulim and Shah Alam, supported by 12 suppliers from China in partnership with 23 local Malaysian partners.

Chery Smart Auto Industrial Park currently under development at Beringin High-Tech Auto Valley

Together, these Chinese-led projects are set to create jobs, transfer know-how, deepen Malaysia’s xEV expertise and strengthen the supporting industries that will connect the country to the global supply chain. The spillover effects could turn Malaysia into a serious contender for regional automotive leadership.

The challenge now is to keep policy in step. Phasing out CBU EV subsidies must be matched with a clear CKD tax exemption plan beyond 2027. That’s what will turn today’s deals into lasting growth and convince more Chinese players like GWM and BAIC, which are currently contract-assembled by EPMB, to put down roots here.