BYD Malaysia Sdn Bhd and Malaysian bus manufacturer Bus Cap Berhad have signed an exclusive memorandum of understanding (MOU) to advance electric bus production in Malaysia. The agreement, formalized in Shenzhen on August 18, marks a significant step in BYD’s efforts to localize commercial vehicle manufacturing and support Malaysia’s push toward electrified public transport.
BYD Expands Local Manufacturing in Malaysia
The newly signed MOU between BYD and Bus Cap Berhad will see both companies collaborate on the local assembly and manufacturing of electric buses. The partnership aims to establish assembly and manufacturing facilities in Perak, leveraging Bus Cap’s established presence and manufacturing base through its subsidiary, Sin Hock Leong Coach Works Sdn Bhd, which has operated in Malaysia since 1968.
Bus Cap, headquartered in Ipoh, Perak, recently listed on the ACE Market of Bursa Malaysia on June 3. Since its listing, the company’s shares have more than doubled, reflecting growing investor confidence in Malaysia’s transition to electric mobility.
Strategic Cooperation for Southeast Asia
Under the MOU, BYD and Bus Cap will focus on product localization, sales models, and after-sales service. The agreement also positions Malaysia as a strategic base for advancing commercial new energy vehicle (NEV) cooperation across Southeast Asia.
BYD group vice president Luo Zhongliang stated that the company will continue to develop and produce new energy buses tailored to local requirements, using Malaysia as a hub for further expansion in the region.
Alignment with Malaysia’s Energy Transition Goals
The collaboration supports Malaysia’s National Energy Transition Roadmap (NETR), which prioritizes the electrification of public transport. Both companies highlighted that the move will help build a competitive foundation for electric bus assembly, manufacturing, and deployment within Malaysia.
BYD’s Track Record and Regional Growth
BYD first entered the Malaysian market in 2014, initially assembling electric buses locally on a CKD (Completely Knock Down) basis. In August 2023, BYD announced plans to build a passenger vehicle assembly plant in Malaysia, with production expected to begin in 2026.
In Southeast Asia, BYD’s plant in Thailand began operations in July 2024, further strengthening the company’s regional manufacturing footprint.
Commercial NEV Sales Performance
Commercial vehicles have become a fast-growing segment for BYD. In July 2026, BYD’s commercial NEV sales reached 8,139 units, representing a 149% increase year-on-year and a 32% rise from June. For the first seven months of 2026, cumulative commercial NEV sales totaled 39,275 units, up 9% compared to the same period last year.
In Malaysia, BYD was the top-selling BEV brand in 2025, with 11,097 units sold year-to-date and a 70% year-on-year increase.
Competitor Comparison
BYD faces competition in the Southeast Asian electric bus and commercial NEV market from other global and regional manufacturers, including Volvo, Aito, and BYD’s own operations in Thailand. However, BYD’s strong sales growth and established local partnerships position it as a leading player in Malaysia’s electrification efforts.
Why this matters
This partnership between BYD and Bus Cap is a significant development for Malaysia’s electric vehicle industry, supporting the country’s energy transition and public transport electrification goals. The move also strengthens BYD’s position as the leading BEV brand in Malaysia and enhances its ability to serve the broader Southeast Asian market.
What this means for buyers
For fleet operators and public transport authorities in Malaysia, the localization of electric bus production could mean improved access to advanced NEV technology, faster delivery times, and enhanced after-sales support. Buyers should watch for further announcements regarding local assembly timelines and potential incentives as Malaysia accelerates its shift to electric mobility.
Key Specs
- MOU Signing Date: August 18, 2026
- Planned Facility Location: Perak, Malaysia
- BYD Commercial NEV Sales (July 2026): 8,139 units
- BYD Commercial NEV Sales (Jan–Jul 2026): 39,275 units
- Malaysia BEV Sales (2025): 11,097 units
- Year-on-Year Growth (Malaysia, 2025): 70%
- Bus Cap Listing Date: June 3, 2026
Source
Images sourced from: sustainable-bus.com, reuters.com
