BMW now makes electric cars in Malaysia

BMW Group Malaysia, the automaker's local subsidiary, has begun selling its first locally assembled electric vehicle in the Southeast Asian island nation, the BMW i5. Later this year, the BMW iX1 will also launch in Malaysia.

Bmw i5 edrive — The i5 eDrive40 – now also in production in Malaysia.
Image: BMW

BMW has begun producing electric vehicles in the Asia-Pacific region: the i5 eDrive40 is now rolling off the production line at its Kulim plant in Malaysia. Since 2008, BMW has operated a vehicle assembly plant there in collaboration with Inokom—a subsidiary of the Sime Darby Group. According to BMW Blog, the locally produced electric saloon will be more affordable, with prices set approximately 8,000 dollars lower than previously imported units. The Malaysia-built model also features distinct design and equipment details, including the M Sport Pro Package as standard.

In addition to Malaysia, BMW produces the i5 in China, where BMW Brilliance Automotive manufactures the model at its Dadong plant in Shenyang in a long-wheelbase version. The model has been adapted for the Chinese market with specific design and equipment features beyond its extended length. According to BMW Blog, the long-wheelbase i5 is also expected to be assembled at the Chennai plant in India for the local market in the future. Additionally, the globally available i5 (referred to as G60 to distinguish it from locally specific variants) ‘is due for a mid-cycle facelift in 2027, when it will receive an evolutionary styling update along with the iDrive X interface inside.’

BMW’s production network is structured so that the majority of its passenger cars are produced in its own plants. However, some vehicles are also built by contract manufacturers, such as Magna Steyr, or in partner plants in collaboration with local corporations. The latter applies in Malaysia, where BMW works with the conglomerate Sime Darby. Assembly is based on CKD (Completely Knocked Down) kits, meaning vehicles are fully disassembled after their initial production, shipped, and reassembled at the local plant.

In Kulim, the i5 eDrive40 is now produced alongside a broad range of conventionally powered saloons and SUVs. According to Just Auto, BMW sold around 10,800 vehicles in Malaysia in 2025, with local production accounting for approximately 7,000 units.

just-auto.com, malaymail.com, bmwblog.com