MITI Clarifies BYD CKD Rumors: No "RM200,000 Threshold", RM100,000 Base Price Applies to All Brands!

In response to the viral rumors over the weekend claiming that BYD had shelved its local assembly (CKD) plans due to dissatisfaction with government conditions, the Ministry of Investment, Trade and Industry (MITI) has issued an official statement to debunk these claims. MITI emphasized that Malaysia's automotive policy is not designed to create arbitrary barriers for specific brands, but rather to ensure the sustainable development of the local automotive ecosystem.

Rumor Recap: RM200,000 Base Price and 80% Export Rate? 

Earlier reports suggested that MITI had imposed stringent conditions on BYD's CKD project in Tanjung Malim, including a requirement to export 80% of its Malaysian production and a minimum selling price of over RM200,000 for units sold locally. As these rumored terms contradicted BYD's current mass-market strategy, the news sparked concerns among netizens regarding BYD's potential withdrawal from its Malaysian assembly plans.

MITI Clarification: The Truth is RM100,000 

In an official statement released on March 31, 2026, MITI dismissed the misleading claims circulating on social media. Below are the key points of the official clarification: 

Entry Threshold: The rumored RM 200,000 base price is inaccurate. MITI confirmed that for all new automotive investments, including BYD's CKD project, the minimum on-the-road (OTR) price for locally assembled units is set at RM100,000.

Policy Consistency: This standard aims to balance foreign investment with the protection of the local industry, ensuring the local supplier ecosystem — which supports 700,000 jobs and contributes 4% to Malaysia's GDP — has an adequate transition buffer.

Manufacturing Licenses: MITI highlighted that manufacturing licenses are being granted to those who align with Malaysia's long-term goals. BYD was granted its interim manufacturing license in September 2025, while Chery received its official license as early as June 2025, proving that Malaysia remains a welcoming and open hub for global EV players.

Why Does Malaysia Insist on "Localization"? 

In its official statement, MITI underscored the success stories of Proton-Geely and Perodua-Daihatsu. Currently, the local content procurement rate for both national car giants exceeds 75%.

The ministry's stance is clear:

"Malaysia remains open for any potential investors and businesses coming into Malaysia, We invite
all global automotive manufacturers including Chinese brands, to grow with us, not only as a
market but as a manufacturing and export base. Our policies are not about closing doors, they are
about ensuring that every investment creates deep local value, technology transfer and
sustainable jobs. We look forward to working with partners who share that vision."

Industry Observation: Malaysia Solidifies Its Role as ASEAN's EV Hub

Currently, 14 Chinese automotive brands have established a presence in the Malaysian market. Beyond BYD and Chery, global giants like Mercedes-Benz, Volvo, and Stellantis have also chosen Malaysia as their regional assembly base.

Supported by the National Automotive Policy 2020 (NAP 2020) and the New Industrial Master Plan 2030 (NIMP 2030), Malaysia's automotive sector is backed by over 592 specialized suppliers. MITI reaffirmed that Malaysia's doors remain wide open to brands committed to high-value investment and technology transfer. By leveraging Malaysia's 17 Free Trade Agreements (FTAs), these manufacturers gain a competitive gateway to a regional market of over 600 million consumers.

MITI's swift and transparent clarification provides a much-needed boost of confidence to the industry and prospective buyers awaiting BYD's CKD models. While the RM 100,000 base price remains a firm boundary to protect the national car ecosystem, it also sets a clear benchmark for the future: we can expect more affordable, high-spec, and locally assembled EVs to hit the Malaysian roads soon.