BYD Malaysia has selected Inokom Corporation Sdn. Bhd., a subsidiary of Sime Motors based in Kulim, Kedah, as its local assembly partner. The move marks a key milestone in the electric vehicle manufacturer’s strategy to assemble completely knocked-down vehicles within the country.
The collaboration was formalized through the signing of a Memorandum of Understanding at BYD’s global headquarters in Shenzhen, China. Signatories included Liu Xueliang, Vice President of BYD and General Manager of BYD Asia Pacific Auto Sales Division, and Dato’ Jeffri Salim Davidson, Group Chief Executive Officer of Sime. Representatives from both organizations, including BYD Malaysia Managing Director Jacob Ma and Sime Motors Southeast Asia Managing Director Jeffrey Gan, witnessed the proceeding.
The selection of Inokom followed an evaluation of the domestic market and local manufacturing capabilities. Inokom’s established vehicle assembly infrastructure and experienced workforce offer a practical framework for BYD Malaysia to expand its local operations while drawing upon existing national automotive resources.
BYD leadership emphasized that localized assembly reflects the company’s long-term commitment to the Malaysian market.
The partnership aims to integrate BYD’s expertise in new energy vehicles and battery technologies into the domestic automotive sector while exploring opportunities to deepen local investment.
Sime executive leadership noted that the selection highlights the strength of Malaysia’s vehicle assembly experience, workforce, and supply chain network. The collaboration is expected to reinforce the local automotive ecosystem, support domestic businesses, and foster skills development necessary for sustained industry growth. Further specifics regarding the local assembly program will be disclosed at a later date.
Malaysia serves as a strategic center for electric vehicle adoption within Southeast Asia. Under the National Energy Transition Roadmap, the government aims to achieve a 15 percent electric vehicle penetration rate of total industry volume by 2030, targeting 38 percent by 2040. Current electric vehicle registrations represent between 3 percent and 5 percent of annual sales, supported by tax exemptions for imported units and targeted charging infrastructure investments.
The Ministry of Investment, Trade and Industry enforces regulatory guidelines requiring foreign electric vehicle manufacturers to establish domestic assembly operations or partner with Malaysian industrial groups to maintain long-term access. Transitioning to local production enables manufacturers to optimize retail pricing through tariff reductions, lower transport dependencies, and meet national manufacturing mandates.
Distributed through Sime Motors, BYD holds the largest share of Malaysia’s electric vehicle segment, accounting for roughly 40 percent to 44 percent of total pure electric passenger car sales. The company’s domestic portfolio spans the compact Atto 3 crossover as its main volume driver, the entry-level Dolphin hatchback, the Seal mid-size sedan, alongside the Sealion 7 crossover and M6 multi-purpose vehicle for family transport.
Partnering with Inokom for completely knocked-down assembly mirrors broader manufacturing trends across the regional automotive sector. By utilizing the established Kulim facility, BYD fulfills local manufacturing requirements without building new production plants, directly integrating its operations into the broader domestic supply chain.