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BYD Was Supposed To Build Its Own Factory. So Why Inokom Now?

Sofea Najmi

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BYD's Malaysian manufacturing plans have taken quite a turn. The Chinese EV giant originally planned to build its own assembly facility in Tanjung Malim, Perak. Fast-forward to October 2026, and BYD has officially chosen a different route: partnering with Sime Motors' Inokom Corporation in Kulim, Kedah.

The agreement, formalised through a memorandum of understanding (MoU) signed at BYD's headquarters in Shenzhen, confirms Inokom as the company's Malaysian local assembly partner.

But here's the interesting part. Why would a company with BYD's manufacturing expertise choose someone else's factory instead of building its own?

TL;DR: WHY INOKOM?

1. BYD has selected Inokom in Kulim as its Malaysian CKD partner.

2. Inokom already has manufacturing facilities, experienced workers and a track record of assembling vehicles for international brands.

3. Using an existing assembly partner offers a potentially faster route to Malaysian production.

4. The first locally assembled BYD model and production date remain unannounced.

From Tanjung Malim To Kulim: What Changed?

BYD's original Malaysian manufacturing proposal centred on a dedicated assembly facility at KLK TechPark in Tanjung Malim.

The project received an interim manufacturing licence in September 2025, according to the Ministry of Investment, Trade and Industry (MITI).

However, BYD subsequently changed its approach. By September 2026, the company had confirmed that it would pursue local assembly through an established Malaysian partner instead.

BYD-Inokom-Partnership.jpg

BYD Malaysia managing director Jacob Ma previously described partnering with an existing assembler as the fastest option for bringing locally assembled BYD vehicles to market.

Now, the Inokom announcement puts a name to that strategy.

BYD'S MALAYSIAN FACTORY PLAN: THEN VS NOW

ORIGINAL: TANJUNG MALIM

Location: Tanjung Malim, Perak

Approach: Proposed dedicated BYD facility

Status: Original factory plan cancelled

CURRENT: INOKOM

Location: Kulim, Kedah

Approach: Assembly through an established partner

Status: MoU signed; production details pending

IMG-20250822-WA0190-full_normal.jpg
BYD's original plan involved establishing its own manufacturing facility in Tanjung Malim, Perak.

So, What Makes Inokom Such An Attractive Choice?

For starters, Inokom is hardly a newcomer. The Sime Motors subsidiary operates an established automotive manufacturing complex in Kulim, Kedah, covering approximately 200 acres and employing more than 2,700 Malaysians.

Its operations include body, paint and vehicle assembly facilities, supported by warehouses and other manufacturing infrastructure.

And here's something some Malaysians might not realise: Inokom has assembled vehicles for BMW, MINI, Porsche, Mazda, Hyundai and Chery.

INOKOM AT A GLANCE

Location: Kulim, Kedah

Facility: Approximately 200 acres

Workforce: More than 2,700 Malaysians

Facilities: Body, paint and assembly operations

Brand experience: BMW, MINI, Porsche, Mazda, Hyundai and Chery

These details come from Sime's official overview of Inokom's manufacturing operations.

Aerial view of the Inokom vehicle assembly plant in Kulim, Kedah
Inokom's Kulim facility has an established automotive manufacturing operation, including body, paint and vehicle assembly capabilities.

For BYD, partnering with Inokom means building on existing manufacturing infrastructure rather than developing an entirely new facility from scratch.

That could shorten the journey towards local assembly, although BYD-specific tooling, production preparation and quality validation will still be necessary.

Could Malaysia's Automotive Rules Explain The Switch?

There's another important factor worth examining: Malaysia's automotive manufacturing policies.

In its 31 March 2026 clarification, MITI outlined several conditions attached to BYD's original Tanjung Malim manufacturing approval.

BYD'S ORIGINAL FACTORY CONDITIONS

Domestic Sales
Up to 10,000 vehicles annually under the original approval.

Export-Oriented Production
The factory was expected to operate under an export-focused framework.

Local Manufacturing
Requirements included local body, paint and related manufacturing operations.

Minimum Vehicle Price
RM100,000 on-the-road, as clarified by MITI.

But here's the important distinction. MITI stated that the conditions introduced for new automotive manufacturing investments from September 2025 excluded companies using existing local assembly facilities. That's the route BYD has now chosen through Inokom.

WHY THIS MATTERS

Original Tanjung Malim plan:
A new standalone manufacturing facility with specific conditions attached to its approval.

New Inokom arrangement:
Assembly through an established Malaysian manufacturer, which falls under a different manufacturing arrangement.

Carz analysis: The policy distinction may have made contract assembly more attractive, alongside Inokom's operational advantages. However, BYD has not confirmed the precise role of these regulations in its decision, and the conditions applicable to the Inokom arrangement have not been disclosed.

In other words, Malaysia's automotive policy provides an important piece of the puzzle, even if it doesn't explain every factor behind BYD's decision.

What Does Malaysia Gain From The Partnership?

For Malaysia, this is about more than adding another name to an assembly plant. Inokom brings an established workforce and manufacturing ecosystem, while BYD contributes its expertise in EVs, batteries and related technologies.

The partnership could create opportunities for technical collaboration, supplier participation and workforce development. However, the scale of those benefits will depend on how the project develops.

It also reinforces BYD's commitment to establishing a local assembly presence in Malaysia, despite the change to its original plans.

BYD-Inokom-Partnership-1.png

The partnership brings together BYD's EV expertise and Inokom's established Malaysian automotive manufacturing capabilities.

Which BYD Models Will Be Assembled In Malaysia?

Now comes the question Malaysian motorists will be watching most closely. BYD has confirmed its assembly partner, but the first locally assembled model and production commencement date have not been announced.

There is also no confirmed production volume or announcement of how the arrangement might affect vehicle prices.

WHAT'S CONFIRMED VS STILL UNKNOWN

CONFIRMED: Inokom is BYD's Malaysian assembly partner.

CONFIRMED: Both parties have signed an MoU.

NOT ANNOUNCED: First locally assembled BYD model.

NOT ANNOUNCED: Production start date.

NOT ANNOUNCED: Production volume and potential pricing implications.

THUMB-byd-atto-3.png

BYD has yet to identify which models from its vehicle range will be assembled locally at Inokom.

BYD Malaysia CKD: Frequently Asked Questions

1. Where will BYD vehicles be assembled in Malaysia?

BYD has selected Inokom's existing automotive manufacturing facility in Kulim, Kedah, as its local assembly partner.

2. Why did BYD cancel its Tanjung Malim factory plan?

BYD has shifted to contract assembly through an existing Malaysian manufacturer. The company has highlighted the practical advantages of using established manufacturing facilities, but has not confirmed every factor behind its decision.

3. Will locally assembled BYD vehicles be cheaper?

It is too early to say. BYD has not announced which models will be assembled locally or whether the arrangement will affect their selling prices.

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Written By

Sofea Najmi

A Bachelor of English Language and Literature graduate with an obsession for the finer details. Sofea uses her background in translation to decode the technicalities of automotive innovation. She is dedicated to delivering impactful, meticulously researched articles that provide a narrative far beyond the spec sheet. LinkedIn: https://bit.ly/3C018vv

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JPJ Running Numbers

KUALA LUMPUR

VRT9860

SELANGOR

BSU4223

JOHOR

JF7250J

PULAU PINANG

PSG4393

PERAK

APM2575

PAHANG

CFJ1233

KEDAH

KGJ4724

NEGERI SEMBILAN

NEM2853

KOTA KINABALU

SJU5612

KUCHING

QAB7546P

Last updated 15 Oct, 2026

Fuel Price

Petrol

RON 95

RM 3.97

+1.38

RON 97

RM 4.90

+1.75

RON 100

RM 7.20

+2.20

VPR

RM 8.23

+2.00

Diesel

EURO 5 B10

RM 5.12

+2.08

EURO 5 B7

RM 5.32

+2.08

Last updated 30 Apr, 2026

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