Investment, trade and industry minister Johari Ghani told The Edge daily that BYD has been unable to agree with terms set by his ministry, including that it exports at least 80% of the cars produced in Tanjung Malim, and price the remaining 20% above RM200,000 a unit.

“We have to protect our auto industry,” he said.

Johari noted that national carmaker Proton Holdings Bhd sells about 150,000 cars a year, while Perusahaan Otomobil Kedua Sdn Bhd (Perodua) sells about 350,000, “which is a lot”.

“These two companies built much of the existing ecosystem for the auto industry in Malaysia, so we have to protect them,” he said.

The Edge noted that Proton’s first EV, the Proton e.MAS 5 electric hatchback, starts from about RM57,000.

On the other hand, Perodua spent RM800 million on developing the QV-E, launching it in December 2025 at RM80,000 for the car body and a nine-year lease for a battery at RM275 a month, bringing the total cost per unit to over RM100,000.

According to road transport department figures, Proton led EV sales numbers in February 2026 with 1,802 registrations, followed by BYD at 469 units. Meanwhile, Perodua registered only one EV that month, up from zero sales in January.

Johari also said Chery Malaysia’s plans for a RM2.2 billion investment on a 81ha assembly plant in Hulu Selangor would proceed as the deal has already been concluded.