Minister Johari Ghani said there were a number of claims circulating online regarding the conditions set for BYD’s manufacturing licence, which had given rise to confusion on the matter.
In a statement, he said BYD obtained an interim manufacturing licence in September 2025 for the assembly plant on the basis of export-oriented production.
He said the conditions were designed to ensure alignment with the National Automotive Policy and New Industrial Master Plan 2030, promote high-value activities, and prevent market distortion.
“These conditions are not unique to BYD but reflect a consistent approach applied to all new automotive investments in Malaysia beginning September 2025, except those using existing local-assembly facilities,” said Johari.
He said additional conditions for BYD’s manufacturing licence were a 10,000-unit sales volume for the domestic market, or 20% of the plant’s total production capacity, with a minimum on-the-road price of RM100,000.
He said claims that just 20% of locally-produced BYD cars could be sold here and that they must be priced above RM200,000 were inaccurate.
“This is not a restriction but a mutually agreed production framework,” he said.
“The attached conditions are non-discriminatory and are applicable equally to all high-volume automotive assembly projects regardless of brand and country of origin.
“This is designed to ensure that local assembly capacity moves towards sustainable, higher-value market segments, and to avoid the displacement of the established vendor eco-system. BYD is not singled out, the same condition applies to any new CKD entrant.”
Floor price for imported EVs under review
Johari said the current approved permit (AP) franchise policy was that imported completely built-up (CBU) vehicles must be sold at a minimum on-the-road price of RM250,000.
However, he said Putrajaya lowered the floor price to RM100,000 from 2022 to Dec 31, 2025 to encourage EV take-up while giving local carmakers the time and space to develop their own EV capabilities and supply chains.
“Local manufacturing and assembly, not perpetual CBU imports, is the government’s longer-term strategy for making EVs more accessible and affordable to Malaysians.
“Nevertheless, Miti is currently reviewing the floor price policy to further strengthen local assembly activities while ensuring that CBU vehicle pricing is driven by market forces.”
False claims
Johari denied claims that Miti had banned imports of new pick-up truck models or brands such as the BYD Shark or GWM Cannon.
He said all commercial vehicles, including pick-up trucks, were subject to CKD localisation requirements.
“CBU imports are permitted with limited quota under the market research pre-assembly AP quota.
“There has been no announcement from Miti banning the importation of new pick-up truck brands into Malaysia.”
Johari also argued that Miti’s approach was not protectionist but developmental, saying investments without clear export commitments or localisation plans would provide limited advantages to the local automotive ecosystem.
“Our framework is designed to encourage exactly the kind of long-term, high-value commitment that benefits both investors and Malaysia.”
Malaysia’s doors remain open
Johari also maintained that the government remained “genuinely open” to automotive investments from China, pointing out that 14 of the 34 foreign carmakers in the Malaysian market are Chinese.
He added that Chery Automobile Co Ltd was also granted a manufacturing licence in June 2025, showing that Miti’s policy framework was not a barrier to entry.
“Malaysia stands ready to partner with manufacturers who come here not only to serve our domestic market, but to build for the world, and our policy framework is designed precisely to enable and accelerate that ambition.
“Our workforce is technically capable, English-speaking, and experienced in precision manufacturing. Our regulatory environment, while demanding on standards, is stable, transparent, and consistently applied.
“For manufacturers serious about a long-term, export-oriented presence in Southeast Asia, Malaysia remains one of the most compelling destinations in the region,” said Johari.