Chinese electric vehicle (EV) manufacturer BYD is expected to announce its next move for further expansion in Malaysia within a week, amid uncertainty over whether the automaker will collaborate with a local partner or establish its own manufacturing facility.

BYD Vice-President Liu Xueliang said the company would continue exploring cooperation with local partners to support the development of Malaysia's new energy vehicle (NEV) industry.

"We will continue to explore, together with local partners, how we can better support the development of Malaysia's new energy vehicle industry. Of course, our development in Malaysia has also been progressing very well. Very soon, we will announce our approach towards sustainable development," he told Malaysian media after the Asia-Pacific Story session titled "Stories of Industrial Integration" on September 5th.

Asked whether BYD would pursue cooperation with a local partner or adopt another approach, Liu said: "Wait another week and we will announce it."

The remarks relate to BYD's next steps in Malaysia, particularly its local manufacturing strategy and potential partnerships. Malaysia is seeking to develop its EV industry while increasing localisation and investment across the automotive supply chain.

In May, it was reported that BYD was evaluating a potential contract assembly partnership with Sime Motors' Inokom plant in Kulim, Kedah, as the Chinese automaker reviewed its local manufacturing strategy in Malaysia.

Progress on BYD's proposed manufacturing plant in Tanjung Malim, Perak, appeared to have stalled as of March this year. This was followed by a statement from the Ministry of Investment, Trade and Industry addressing claims circulating on social media regarding conditions imposed on BYD's manufacturing licence and other related policies.

Meanwhile, from July 1st this year, fully imported or completely built-up (CBU) EVs are required to have a minimum declared cost, insurance and freight (CIF) value of MYR 200,000 (US$ 49,430), as well as a minimum power output of 245 PS (180 kW).

The new requirements followed the expiry of Malaysia's special tax exemption for imported CBU EVs at the end of 2025.

Liu said BYD had reaffirmed its commitment to long-term investment in Malaysia despite developments affecting the progress of its plans. He also identified East Malaysia as a market with potential for further growth, while noting that suitable vehicle models would be required to expand BYD's presence in the region.

"We believe East Malaysia still has significant room for development, but first, we hope to have suitable models for the East Malaysian market," he added.

Liu said BYD's strategy covers Malaysia as a whole and is not confined to any particular region.