China's automotive giant BYD announced plans on August 22, 2025, to build a new energy vehicle (NEV) factory in Malaysia. Simultaneously launching a new model of its "Seal" sedan, the company is strengthening its presence in the Southeast Asian market.
Factory Construction Plan Overview
BYD will build a Complete Knock Down (CKD) NEV factory in Malaysia, with full-scale production scheduled to begin in 2026. While investment amounts and production model details have not been announced, this factory is expected to become a crucial hub for the company's Southeast Asian strategy.
On the same day as the factory announcement, BYD opened its 36th dealership in the country. Combined with stores for its luxury brand "Denza," the company now has a total of 43 dealerships in Malaysia, demonstrating expanding sales network development.
Performance in Malaysian Market
Malaysia has become one of BYD's most important markets in Southeast Asia. The company's battery electric vehicle (BEV) sales have ranked first in the local market for three consecutive years, with the "Seal" sedan becoming the best-selling BEV in the Malaysian market in 2024.
Building on this strong market foundation, BYD aims to further expand its market share by establishing local production capabilities.
Accelerating Global Expansion
BYD is aggressively expanding into overseas markets, selling in over 100 countries and regions as of July 2025. Overseas sales in the first half of 2025 (January-June) reached 470,000 units, 2.3 times the previous year's figure, with full-year 2025 sales expected to reach 800,000 units.
Partly to avoid high tariffs imposed by the EU and others on cars imported from China, the company is actively promoting the establishment of overseas production bases in addition to exports from China. In Southeast Asia, BYD is building factories in Thailand, Indonesia, and Cambodia, in addition to Malaysia.
European Exports from Thailand Factory Begin
On August 25, 2025, BYD announced it would export approximately 900 BEVs from its Thailand factory to the UK, Germany, and Belgium using its own cargo ships. The Thailand factory is BYD's first overseas passenger car production facility, with an annual production capacity of 150,000 units and cumulative deliveries reaching 90,000 units by July 2025.
The success of the Thailand factory suggests that the Malaysian factory could also function as a Southeast Asian production hub, serving not only the regional market but also as an export base to Europe and beyond.
Significance of Southeast Asian Strategy
BYD's Malaysian factory construction represents a crucial step in the company's Southeast Asian strategy. Local production enables reduced transportation costs, shorter delivery times, and rapid response to local markets, while also enabling expanded intra-regional exports utilizing ASEAN's preferential tariff measures.
Furthermore, by using Malaysia as an export base, BYD can pursue strategic expansion targeting right-hand drive Commonwealth countries, potentially further accelerating the company's global expansion.