Auto Parts Factory in Selangor Before the 2027 CKD Deadline: Where to Locate and What Specs
Malaysia's CKD duty exemption ends in December 2027. Here is where auto and EV parts suppliers should set up in Selangor, from Rawang to Serendah, and the factory specs each part type needs.
Key Takeaways
- Imported (CBU) EVs pay duty from 2026 and the CKD duty exemption ends in December 2027, pushing carmakers and suppliers toward local production.
- Selangor's anchors are Chery (a RM2.2b park in Hulu Selangor plus its Shah Alam plant) and Perodua (QV-E built on Tan Chong's Serendah line, vendor base in Sungai Choh, Rawang).
- The supplier belt is north Selangor: Rawang, Sungai Choh, Serendah, Bukit Beruntung and Kerling, with Shah Alam for existing plants and exports.
- Specs depend on the part: stamping needs floor loading and cranes, moulding needs power and cooling, harness and seat lines need floor plate, battery packs need power and fire separation.
- New projects take 18 to 24 months to complete, so suppliers aiming at 2027 to 2028 should shortlist now, and match lease terms to the supply contract.
Malaysia's car policy now runs on a clock. For a component supplier, the question is no longer whether carmakers will buy more parts locally, but where to put the plant and what the building must handle before the customer's volume arrives. This guide covers location, specs and timing in Selangor. For the wider demand story, see our earlier piece on how Chinese carmakers are lifting auto parts factory demand.
The policy clock: what changes, and when
From 2026, imported CBU EVs pay 30% import duty, 10% excise duty and 10% sales tax, ending the tax-free window that began in 2022. New CKD entrants must export up to 80% of output, with 20% for the local market, from July 2026, and the CKD duty exemption expires in December 2027 (The Edge).
The cheap import route has closed and current assembly terms have an end date. How CKD cars are treated after December 2027 is the biggest open question, so check MITI and MIDA announcements before signing anything long.
| Date | Milestone | What it means for suppliers |
|---|---|---|
| Mid-2024 | Chery's Shah Alam plant starts assembling OMODA, JAECOO and iCAUR models (The Edge) | Shah Alam already has an active Chinese-brand customer |
| 2026 | CBU EVs pay 30% import duty, 10% excise and 10% sales tax | Imports lose their price advantage |
| 1 June 2026 | Perodua and Tan Chong's three-year Serendah agreement starts | QV-E production in Serendah to at least May 2029 |
| July 2026 | New CKD entrants must export up to 80% | Port access matters for new assemblers |
| 9 July 2026 | MIDA and Perodua hold an ESG session for about 50 Perodua vendors in Sungai Choh, Rawang | The vendor base is active and being pushed on ESG |
| Late 2026 | Land & General targets phase 1 of its Kerling industrial conversion | New industrial land in Hulu Selangor |
| 2026 to 2027 | Chery Beringin High-Tech Auto Valley completes (reports differ on the year) | Supplier demand around Lembah Beringin |
| December 2027 | CKD duty exemption ends | Carmakers decide what stays local |
| January 2028 | ECRL Section 2, Gombak via Serendah to Port Klang, fully operational (Xinhua) | Rail link from north Selangor to the port |
| 31 May 2029 | Perodua's Serendah agreement ends, with an option to extend two years | A useful benchmark for supplier lease terms |
Who is building in Selangor, and who is not
Chery: Hulu Selangor and Shah Alam
Chery Malaysia is investing RM2.2b in a 200-acre assembly park at the Beringin High-Tech Auto Valley in Hulu Selangor. Initial capacity is 100,000 vehicles a year, scalable to 300,000. It was originally due in 2026 and Chery says construction is progressing well (The Edge), while other reports put completion in 2027, so plan for 2026 to 2027. The site is at Lembah Beringin, about 70km from Kuala Lumpur next to exit 120 of the North-South Expressway, and is expected to create up to 3,000 jobs (Mota Auto).
Chery's Shah Alam plant has exported to Vietnam and Brunei, and The Edge reports a Feytech joint venture with Wuhu Ruitai to make Chery seats. Volvo also assembles EVs in Shah Alam (MGTC).
Perodua: the Serendah line and the Rawang vendor base
Perodua's first EV, the QV-E, is built under a three-year agreement running from 1 June 2026 to 31 May 2029, extendable by two years. Tan Chong Motor Assemblies provides e-coating and paint line services and leases assembly lines in Serendah (The Edge; paultan).
The vendor side is visible too. On 9 July 2026, MIDA and Perodua ran an ESG awareness session for about 50 Perodua vendors at Perodua's headquarters in Sungai Choh, Rawang, including MIDA's Domestic Investment Accelerator Fund for ESG adoption (MIDA). Energy metering, waste handling and a solar-ready roof are becoming part of the customer's checklist.
Elsewhere: BYD in Perak, XPeng in Melaka
BYD's first Malaysian CKD plant is in Tanjung Malim, Perak (TNGlobal), and market players say the new CKD rules may cause it to reassess its plans (The Edge). XPeng is producing in Melaka with EPMB from 2026 (EV Infrastructure News). In Selangor, plan around Chery and Perodua.
Why north Selangor, plus Shah Alam
Selangor's RS-2 plan for 2026 to 2030 names automotive as one of five strategic sectors (Sinar Harian), and transport equipment led the state's approved manufacturing in the first half of 2025 at RM2.25b (Bernama). JPPH-registered data puts Klang & Port Klang (286 deals) and Hulu Selangor (166 deals) among Selangor's busiest industrial markets in the 12 months to July 2026.
| Area | Why suppliers look here | What to check |
|---|---|---|
| Rawang and Sungai Choh | Perodua's headquarters and vendor base | Older units may lack power and height |
| Serendah | Tan Chong's QV-E line; on the ECRL Section 2 route | Check power and ceiling height |
| Bukit Beruntung | Expressway corridor towards Lembah Beringin | Trailer and staff access |
| Kerling and Hulu Selangor | Closest to the Chery park; Land & General is converting a 2,500-acre estate at Sungai Jernih from agriculture to industrial, phase 1 targeted for late 2026 (The Edge) | Mostly land, so add build time |
| Shah Alam | Chery and Volvo plants; closer to Port Klang | Higher land costs, traffic |
Our working rule: tier 1 and tier 2 suppliers want to be within 30 to 60 minutes' drive of the assembly plant, which puts most of north Selangor in range of both Lembah Beringin and Serendah. Start with factories for rent in Rawang. If your customer must export most of its output, port timing matters too; see our Westports CT10 and ECRL guide.
Factory specs by part type
A building that suits a seat line will not suit a press shop. Use this as a starting point, not a substitute for your machine list.
| Part type | Power | Floor and structure | Layout | Watch for |
|---|---|---|---|---|
| Stamping and pressing | High; presses dominate the load | Heavy floor loading, possible press pits or foundations, vibration control | Overhead crane for die changes, high eaves | Landlord consent for pits, reinstatement cost |
| Plastic injection moulding | High; machines plus chillers and compressors | Moderate to heavy, depending on machine tonnage | Space for cooling towers or chillers; crane useful for moulds | Cooling water supply, power upgrade lead time |
| Wire harness and seat assembly | Lower | Standard floor loading | Large clear floor plate, many loading bays | Staff parking, canteen, transport for a large workforce |
| Battery pack assembly | High | Strong floor for racks and packs | Fire separation, dangerous goods storage, buffer from homes | Fire authority approval, insurance |
| Painting, e-coating, surface treatment | Medium to high | Standard plus containment | Treatment and storage of chemicals | Environmental approval and suitable industrial zoning |
For injection moulding, 200A is rarely enough for more than a few small machines once chillers and compressors are added; our plastic injection moulding factory requirements page goes through the checks. Battery pack work has its own rules on storage and separation, covered in our EV battery factory and warehouse guide.
Size your load before viewing. The factory power calculator turns a machine list into an amperage estimate, and the floor loading calculator checks whether a slab can take your presses or racks. Power is the hardest spec to fix after you move in, so ask us for high-power units in Selangor, including ones that are not publicly advertised, or browse high-power factories for sale in Selangor.
Rent or buy: match the building to the contract
Perodua's own arrangement is a useful benchmark: three years plus a two-year option, on someone else's line. Supply contracts are often tied to a model programme and post-2027 policy is unsettled, which favours renting for many suppliers.
Rent when you serve one model programme on a three to five year contract, or want to see the post-2027 CKD rules first. Align the renewal option with any contract extension, get written landlord consent for cranes, power upgrades and press foundations, and agree reinstatement terms up front.
Buy when you supply more than one carmaker, need heavy foundations or a large power upgrade, or plan to stay ten years or more. Sunk costs in pits, cranes and substations make more sense in a building you own.
Either way, start early. Ready-built mid to large manufacturing facilities can take time to find, and new projects generally take 18 to 24 months to complete (Bernama). Buying land in Kerling to build makes a late 2027 start tight, so an existing factory close to your spec is faster. For which Selangor areas suit which industries, see our Selangor rising industries 2026 to 2031 guide.
Supplier site checklist
- Confirm which plant you supply (Chery at Lembah Beringin or Shah Alam, Perodua in Serendah or Rawang) and its start date.
- Drive the route to that plant at shift-change hours.
- Compare TNB supply (amps and kVA) with your machine list, and ask how long an upgrade takes.
- Check floor loading, crane capacity and whether press foundations are allowed.
- Check cooling water, chiller space and drainage.
- Confirm zoning and environmental approvals for painting or chemicals, and fire separation for batteries.
- Check loading bays, trailer access, staff parking and transport.
- Review lease length, renewal option, reinstatement terms and landlord consents.
Risks to price in
- Chery's timing. Completion is reported as 2026 or 2027; a delay pushes back supplier volume.
- Post-2027 rules. What follows the CKD exemption is not yet set out, so avoid commitments that only work under today's terms.
- The export requirement. Some carmakers may reassess or pick other states, as BYD's Perak plant shows.
- EV volume is still small. Malaysia sold 30,848 EVs in 2025, about 3% of new cars, against a national target of 20% by 2030 (The Edge). Suppliers serving both petrol and EV models carry less risk.
- Concentration. New demand rests on two carmakers, and Perodua's Serendah EV line is leased, not a new plant.
FAQ
When does Malaysia's CKD duty exemption end?
The exemption for locally assembled (CKD) vehicles ends in December 2027, while imported CBU EVs have paid duty since 2026. Check MITI and MIDA for the rules after 2027.
Where is Chery's new plant in Selangor?
At the Beringin High-Tech Auto Valley in Lembah Beringin, Hulu Selangor, next to exit 120 of the North-South Expressway. The RM2.2b, 200-acre park starts at 100,000 vehicles a year, with completion reported as 2026 to 2027.
Which areas suit auto parts suppliers in Selangor?
North Selangor: Rawang and Sungai Choh near Perodua, Serendah near Tan Chong's line, Bukit Beruntung and Kerling towards the Chery park. Shah Alam suits suppliers to existing plants or those shipping through Port Klang.
How much power does an auto parts factory need?
It depends on the process. Stamping, injection moulding and battery packs are power-heavy, while harness and seat assembly need much less. Use the factory power calculator with your machine list.
Should an auto parts supplier rent or buy a factory?
Rent if you serve one model programme on a three to five year contract, with the renewal option aligned to it. Buy if you serve several carmakers, need heavy foundations or a big power upgrade, or plan to stay ten years or more.
Is BYD's assembly plant in Selangor?
No. BYD's first Malaysian CKD plant is in Tanjung Malim, Perak, and XPeng is in Melaka. In Selangor, suppliers plan around Chery and Perodua.
Buying or renting, talk to us
Contact Adam or Yuki to discuss your requirements. Confirm the available service, scope and terms directly before proceeding.
| Agent | Mobile / WhatsApp | |
|---|---|---|
| Adam | 60176729873 | +60 17-672 9873 |
| Yuki | 60167724476 | +60 16-772 4476 |
Factories and Warehouses in Port Klang
Archived catalogue records with power, ceiling height and floor loading for every unit:
