Malaysia’s MITI says conditions for new car investments apply equally to all brands, countering claims of unfair treatment against BYD.
KUALA LUMPUR: The Ministry of Investment, Trade and Industry has clarified that its conditions for new automotive investments are uniformly applied to all carmakers.
This follows reports that Chinese electric vehicle manufacturer BYD was re-evaluating its local assembly plans due to perceived unfavourable terms.
Minister Datuk Seri Johari Abdul Ghani stated the policy has been consistently applied since September 2025. He said the requirements are designed to ensure local assembly moves toward higher-value segments and protects the established vendor ecosystem.
Johari refuted claims that BYD was being singled out with unique restrictions. He explained that a condition limiting domestic sales to 20% of production capacity is a standard pro-export measure.
“This is a pro-export condition aimed at ensuring that investment contributes to Malaysia’s trade balance,” said Johari. He clarified this corresponds to 10,000 units per year for BYD, not a restriction on total production.
The minister also corrected an allegation regarding a minimum local selling price. He stated the condition is a minimum on-the-road price of RM100,000 for BYD’s locally assembled vehicles.
“This ensures local assembly focuses on higher-value segments, preserving market space for national players,” Johari explained. He added this still offers affordable EV solutions.
Regarding imported EVs, Johari said the RM250,000 minimum price is the standard for all passenger vehicles imported as completely built-up units. He noted a temporary reduction to RM100,000 was in place until December 2025 to encourage early adoption.
Johari emphasised there is no ban on importing new pick-up truck models. He said commercial vehicles are subject to localisation requirements, with imports permitted under a limited quota.
“MITI’s approach focuses on development rather than protectionism,” Johari stated. He reaffirmed Malaysia remains open to Chinese automotive investment.
The ministry noted that 14 of the 34 foreign automotive brands in Malaysia are Chinese. BYD received an interim manufacturing licence in September 2025, while Chery Automobile received formal approval in June 2025.
“These approvals demonstrate that our policy framework is not a barrier to entry,” Johari concluded.
