BYD’s decision shows Malaysia the need to grow beyond CKD
Malaysia's next automotive strategy should be less obsessed with the nationality of the badge on the bonnet and more interested in the value created underneath it.
Malaysia has been involved in car manufacturing for over four decades, with Proton being a key player. However, the country's automotive industry may need to reconsider its approach as BYD, a leading Chinese electric vehicle manufacturer, has announced it will not build a new factory in the country. BYD will instead assemble cars locally through an established Malaysian assembly partner.
This decision highlights the need for Malaysia to move beyond complete knock-down (CKD) assembly, where vehicles are assembled from pre-built components. The country's automotive ecosystem, which has grown over the years, could be leveraged to assemble vehicles for multiple global brands, creating a more sophisticated business model.
BYD's decision could validate the value of Malaysia's existing assembly facilities and could pave the way for the country to become a hub for highly efficient multi-brand assembly specialists.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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