BYD’s pivot to contract assembly of its electric vehicles is a positive for Sime Darby, says CGS International. (BYD Cars Malaysia pic)PETALING JAYA: Sime Darby Bhd will be the key beneficiary of Chinese carmaker BYD’s tie up with a local car assembly partner for its completely knocked-down (CKD) vehicle operations in Malaysia, a research house said.
This follows BYD’s appointment of Sime Darby’s 54%-owned subsidiary Inokom Corp Sdn Bhd to assemble BYD electric vehicles (EVs) at its plant in Kulim, Kedah. The memorandum of understanding was signed yesterday at BYD’s headquarters in Shenzhen, China.
“While still pending further clarity on production volumes secured by BYD with Inokom, we view the pivot to contract assembly as positive for Sime Darby,” CGS International said in a note today.
