Chinese car maker XPeng will begin assembling electric vehicles (EVs) in Malaysia, following a partnership with EP Manufacturing Berhad (EPMB).
XPENG IN SOUTHEAST ASIA
As part of its global expansion, Guangzhou-based auto manufacturer XPeng has set its sights on Southeast Asia. In 2024, the company began selling their products in Thailand, Malaysia, and Singapore, before expanding to Indonesia earlier this year.
In September, XPeng announced a network of 2.4 million charging piles across Europe and Asia Pacific. So far, in the Southeast Asian region, the company is supplying EV networks in key cities across Thailand, Malaysia, and Singapore.
PRODUCTION IN MALAYSIA
XPeng is set to assemble EVs in EPMB’s Malacca facility, marking the company’s third overseas assembly plant and second in Southeast Asia. Prior to the Malaysian facility, the car maker set-up production in Indonesia for left-hand drive vehicles. The upcoming Malaysian plant will produce right-hand drive vehicles, with mass production starting in March of next year.
Cars manufactured from both Indonesian and Malaysian facilities will be distributed across Southeast Asia, specifically the G6 electric SUV model and the X9 minivan. Production of the G6 will begin on 25 March and the X9 on 25 May.
The decision to produce locally before the end of 2025 is strategic, with Malaysia set to cease financial incentives for imported EVs by 31 December this year. On the other hand, domestically assembled EVs will be exempted from taxes until the end of 2027.
PARTNERSHIP AND STRATEGY
Partnering with XPeng is EP Manufacturing Berhad, a local Malaysian auto components manufacturer. Alongside its subsidiary PEPS-JV, the manufacturer requires XPeng to fulfil a minimum order quantity. According to Reuters, PEPS-JV “will be given a first right of offer for the assembly of three subsequent XPeng models.”
The upcoming Malacca facility is said to be a “strategic base” for XPeng. The establishment of its Southeast Asia plants supports XPeng’s “triangular architecture” expansion strategy which encompasses China, Southeast Asia, and Europe. Due to this strategy, it is the first Chinese new electric vehicle (NEV) start-up to accomplish an intercontinental manufacturing footprint.
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