BYD Malaysia and Malaysian bus manufacturer Bus Cap have signed a memorandum of understanding (MoU) to explore the local assembly and manufacturing of electric buses in Malaysia, including the proposed establishment of a localised manufacturing facility in Perak.

The MoU was signed in Shenzhen, China, and formalises a collaboration to develop a Malaysia-based new energy commercial vehicle platform. Under the agreement, the companies will explore cooperation in product localisation, sales, marketing and distribution, as well as after-sales services.

The proposed facility would serve as Bus Cap's local industrial platform for BYD's electric commercial vehicle operations in Malaysia. The companies may also consider extending the cooperation beyond electric buses to other new energy commercial and industrial mobility applications, including electric trucks, electric forklifts, electric vans and minibuses, as well as rail-transit-related solutions. Any expansion would depend on market demand, technical feasibility and definitive agreements.

BYD Vice-President and Commercial Vehicle Division General Manager Luo Zhongliang, who witnessed the signing, said the MoU was part of the company's assessment of the electric commercial vehicle market in Malaysia.

"We believe the combination of BYD's new energy vehicle technology and Bus Cap's local industrial platform can create a strong foundation for electric bus assembly, manufacturing and deployment in Malaysia, while electric buses are the immediate starting point, we hope this cooperation will not stop there," Luo said.

Bus Cap, a listed Malaysian bus manufacturer headquartered in Ipoh, Perak, has been involved in vehicle manufacturing since 1968 through its core subsidiary, Sin Hock Leong Coach Works (SHL Coach). SHL Coach provides the industrial base for the proposed expansion and serves transport operators, travel companies, vehicle dealers and government agencies across Malaysia and Singapore.

The company said the MoU would allow it to participate in Malaysia's transition from conventional bus manufacturing to localised electric bus assembly and manufacturing, after-sales support and lifecycle mobility solutions.

"Our ambition for Bus Cap has always been bigger than simply building vehicles. We want to build, connect and support the full lifecycle of transportation assets - from manufacturing and delivery to after-sales, maintenance and future mobility solutions," said Bus Cap Executive Director Bernard Ng Chong Yan.

The proposed cooperation comes as Malaysia's public transport sector moves towards greater electrification. The National Energy Transition Roadmap 2050 plans for more than 1,100 electric buses to be integrated between 2025 and 2030, while Prasarana Malaysia Bhd announced in January last year that its procurement of 310 diesel-engine buses would be its final intake of internal combustion engine vehicles before it shifts entirely to electric platforms by 2037.

The companies said the transition is expected to increase demand for electric buses and related mobility solutions.

BYD's involvement in Malaysia's commercial vehicle market dates back to 2014, when commercial vehicles formed its initial entry into the Malaysian market. At the time, AMDAC, a company involved in heavy-duty and special-purpose vehicles, was reported to have secured an agreement to supply 15 BYD K9 electric buses to Sunway BRT and 40 units to Panorama Melaka.

The latest MoU expands the scope of BYD's activities in Malaysia's commercial vehicle sector while giving Bus Cap a potential role in the country's electric commercial vehicle manufacturing sector.