Malaysian investment, trade and industry minister (MITI) Datuk Seri Johari Abdul Ghani has said today in parliament that the ministry has not been formally notified yet if BYD will proceed with its Tanjong Malim plant plans, Bernama reports.
Senator Tan Sri Low Kian Chuan was searching for an update on BYD’s proposed plant as an EV maker that has met the localisation requirements to qualify for preferential tax treatment under the completely-knocked-down (CKD) scheme.
“Any decision to proceed with, defer or revise its investment plans is a business decision for the corporate,” Johari replied, adding that the federal government is already encouraging the local assembly of EVs by offering import duty, excise duty and sales tax exemptions until December 31, 2027.
He said, nevertheless, that eligibility for these incentives remain subject to compliance with the Customs Regulations 1988 and other government-imposed conditions.
“The federal government will proceed to observe the utilisation of existing production capability and make sure that every latest investment contributes meaningfully to higher domestic value-added, the event of local vendors, technology transfer, the creation of high-skilled jobs and stronger export activities,” Johari said.
To recap, MITI’s latest fully-imported (CBU) EV regulations mean that BYD’s current all-CBU line-up will either be outlawed because they don’t make at the very least 180 kW (245 PS), or develop into expensive (Seal and Sealion 7) because the fee, insurance and freight (CIF) value must be RM200k or more.
The way in which around that is local assembly (CKD), but because BYD was taking a look at organising its own latest factory, latest regulations mandate a RM100k floor price, 80% of production to be exported and a paint shop, which is a costly element in a automotive factory and an indication of ‘serious work’ being done there, so to say.
So how? Deputy MITI minister Sim Tze Tzin revealed a ‘solution’ in May to The Edge: “If (carmakers) wish to price EVs between RM100,000 and RM200,000, they will work along with contract manufacturers to fabricate here” – as MG, Xpeng and GWM are doing with EPMB in Melaka, and TQ Wuling with Tan Chong.
Hardly every week later, BYD VP and GM of the carmaker’s Asia Pacific Auto Sales Division Liu Xueliang visited Sime Motors’ Inokom plant in Kulim, Kedah, triggering speculation that BYD could as an alternative partner up with its Malaysian distributor for contract assembly. Is Tanjong Malim off the table for BYD?
This Article First Appeared At paultan.org
