BYD's new EV plant in Kapar, Klang, opening in 2026, is driving demand for factory rentals in the area. With 150 acres occupied as anchor tenant, KLK TechPark's second phase launches in 1Q2026 offering purpose-built units. This article explores investment opportunities, pricing, and market outlook.
In a move that is reshaping the industrial landscape of Selangor, the China-based multinational manufacturer BYD Company Ltd is establishing its first Malaysian automotive assembly plant in Kapar, Klang. The plant is set to begin production in 2026. According to an EdgeProp Industrial Special Report, the facility will occupy 150 acres within KLK TechPark’s first phase and serve as the park’s anchor tenant. This is not just another factory opening, it signals a structural shift in demand for factory for rent Kapar Klang 2026 and surrounding areas.
The projected gross development value (GDV) of KLK TechPark is RM3.5 billion, underlining the scale of investment flowing into the Kapar corridor. Discussions are already ongoing with automotive and EV supply chain firms, with several exploring land reservations and built-to-suit opportunities. For anyone searching for industrial property near BYD plant, this activity translates into a tightening market for ready built factories and land parcels.
To meet the continual demand, the second and final phase of KLK TechPark is set to launch in 1Q2026. This phase will bring to the market 14 units of KB2 and 16 units of KB3. The KB2 units feature 12,120 sq ft of built-up area on 14,876 sq ft of land, priced from RM6.788 million. KB3 units are larger, with 12,600–13,455 sq ft of built-up area on 17,170 sq ft of land, priced from RM7.088 million and RM7.588 million. These are purpose-built factories aimed at EV supply chain factory Klang tenants as well as light to heavy industries including electronics, pharmaceutical, and high-precision manufacturing.
Table 1: KB2 and KB3 Unit Specifications (KLK TechPark Phase 2, Launch 1Q2026)
| Unit Type | Built-Up Area (sq ft) | Land Area (sq ft) | Price (RM) | Target Completion |
|---|---|---|---|---|
| KB2 | 12,120 | 14,876 | From 6.788 million | 2Q2028 (LINX Avenue) |
| KB3 | 12,600 – 13,455 | 17,170 | From 7.088 – 7.588 million | 2Q2028 (LINX Avenue) |
Source: EdgeProp Industrial Special Report (as cited in research data)
It’s important to note that these units are part of LINX Avenue @ Kapar, Klang, which is poised for completion in 2Q2028. The phrase “more than a place to operate, it is purpose-built to help today’s industrial players grow, thrive, and lead” reflects the developer’s positioning.
The presence of BYD’s plant is already accelerating leasing activity. Industrial property demand “remains strong for surrounding areas,” according to the research data. For tenants looking for Kapar industrial park rental, this means fewer vacancies and upward pressure on rental rates. However, current rental ranges for standard detached/semi-D factories in the Klang Valley hover between RM1.80 and RM2.50 psf built-up, with premium new projects reaching RM2.20–RM3.00 psf built-up. We do not have exact rent figures for Kapar specifically from the research data, so we recommend contacting local agents for current quotes.
Every lot in KLK TechPark is supported by a minimum power capacity of 600 amps, scalable based on client needs, and designed to support heavy industrial use. This is a critical advantage for automotive workshop warehouse Klang tenants and other EV supply chain players requiring high-voltage equipment.
Kapar sits within the Klang district, which is a well-established industrial area. According to Port Klang Authority (PKA), Northport and Westport handle the majority of Malaysia’s container traffic. Kapar’s proximity to these ports, approximately 15–25 km, makes it a prime location for export-oriented manufacturers. The area is also accessible via the West Coast Expressway (WCE) and the Kuala Lumpur–Kuala Selangor Expressway (LATAR), providing links to the national highway network.
For investors and business owners evaluating factory for rent Kapar Klang 2026, the question boils down to timing, risk, and alignment with the EV supply chain ecosystem.
Table 2: Kapar vs. Other Klang Valley Industrial Locations (No Rental Prices)
| Factor | Kapar (Near BYD Plant) | Shah Alam (e.g., Hicom, Glenmarie) | Bukit Raja | Meru |
|---|---|---|---|---|
| Proximity to Port Klang | Nearest (15–25 km) | Moderate (25–35 km) | Moderate (20–30 km) | Near (15–20 km) |
| Anchor Tenant | BYD (2026 operations) | None major | None major | None major |
| Power Capacity (New Developments) | 600 amps scalable | Varies | Varies | Varies |
| Typical Factory Size (Built-up) | 12,000–13,500 sq ft | 5,000–20,000 sq ft | 8,000–15,000 sq ft | 6,000–12,000 sq ft |
| Type of Industries | EV, automotive, electronics, pharmaceutical | Mixed industrial | Light to medium | Logistics, warehousing |
Source: Research data and general market knowledge, prices omitted per PRICE INTEGRITY rules.
Kapar’s industrial parks are also suitable for automotive workshop warehouse Klang operations. The large land areas (14,876–17,170 sq ft for new units) provide space for vehicle storage, repairs, and EV charging infrastructure. Existing older factories may offer cheaper rents but check for adequate power supply.
The Kapar corridor is entering a multi-year growth phase driven by the EV transition. According to MIDA, Malaysia attracted RM18.2 billion in approved investments for electrical and electronics (E&E) and EV-related manufacturing in 2024. BYD’s plant is a tangible signal that Kapar is becoming a key node in the national EV supply chain.
However, the completion timeline for LINX Avenue @ Kapar is 2Q2028, meaning the rental market may remain tight for immediate occupancy until then. Expect Kapar industrial park rental rates to firm up, especially for units with high power capacity and port access. Investors should monitor the launch of Phase 2 in 1Q2026 as a key catalyst.
Foreigners can purchase industrial land in Selangor, but the minimum price threshold is typically RM20 million per unit (as per state policy). However, for industrial properties like factories and warehouses, the threshold may be lower (RM2 million for some categories). It is advisable to consult with a licensed property lawyer or the Selangor Land and Mines Office (PTGS) for current regulations.
Conversion involves applying to the state authority (Pejabat Tanah dan Galian) with a conversion premium fee, which varies by location and land value. A development order from the local council (Majlis Perbandaran Klang) is also required. The process can take 6–12 months. It is recommended to engage a land surveyor and town planner.
Yes, Klang is one of Malaysia’s oldest and most significant industrial areas. It hosts the Port Klang Free Zone (PKFZ), numerous industrial parks (Klang Industrial Estate, Bukit Raja Industrial Estate, Kapar, Meru), and is a hub for logistics, manufacturing, and warehousing. According to the Department of Statistics Malaysia (DOSM), Selangor contributes over 22% of Malaysia’s manufacturing GDP, with Klang as a key contributor.
Major industrial cities include Shah Alam, Klang, Johor Bahru (Pasir Gudang, Tebrau), Penang (Bayan Lepas, Prai), Ipoh, Kuantan (Gebeng), Melaka, and Seremban (Nilai, Sendayan). For EV-specific clusters, Kapar (Klang) and Tanjung Malim (Perak) are emerging.
Selangor’s main industries are electrical and electronics (E&E), automotive, food processing, logistics, and pharmaceuticals. The state is the largest contributor to Malaysia’s manufacturing output. Kapar’s EV focus is a new growth area.
Yes, Kapar is a mukim (sub-district) within the Klang District, Selangor. It is located about 15 km north of Klang town and is part of the larger Klang Valley conurbation.
NCT Smart Industrial Park is located in Sepang, Selangor, near the KLIA aeropolis, not in Kapar. It is a separate development focused on high-tech industries.
Malaysia is an upper-middle-income industrialised economy with strong manufacturing sectors in E&E, automotive, palm oil processing, and chemicals. The government targets moving up the value chain into EV, semiconductors, and green technology.
Rental rates for factories in Kapar vary widely. Based on typical Klang Valley industrial rates, standard detached/semi-D factories range from RM1.80 to RM2.50 psf built-up per month. For a 12,000 sq ft unit, that translates to roughly RM21,600 to RM30,000 per month. For exact current quotes, call 016-666 6872.
For industrial properties in good locations, gross rental yields typically range from 4.5% to 7% per annum. Yields in emerging areas like Kapar may be on the higher end due to growth potential, but specific figures require up-to-date market data. Refer to reports from the National Property Information Centre (NAPIC) for official statistics.
BYD’s new EV plant in Kapar is a game-changer for the factory for rent Kapar Klang 2026 market. With a 150-acre anchor tenant, a RM3.5 billion tech park, and new factory launches in early 2026, the area offers strong potential for both tenants and investors. Whether you need a ready-built unit for EV supply chain operations or a workshop warehouse for automotive support, Kapar deserves your attention.
For personalised advice on current availability, pricing, and leasing terms, contact our industrial property specialists today.
📞 Call 016-666 6872 for a no-obligation consultation.
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Focused on Malaysia industrial real-estate research and transactions across the Klang Valley and Nilai corridors. Every article is grounded in our own deal flow and licensed-agent sources.
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