- Xpeng partners with EPMB to launch large-scale EV production in Malaysia by 2026.
- Malaysia to become Xpeng’s hub for right-hand-drive markets across ASEAN.
- The move reflects broader Chinese EV expansion amid domestic price competition.
Xpeng announced a collaboration with EP Manufacturing Bhd (EPMB) to begin large-scale electric vehicle production in 2026 in Malaysia, establishing its third production facility beyond China as it accelerates global growth.
Xpeng announced that it will utilize EPMB's current capabilities and upcoming expansions for EV manufacturing in Malaysia, referring to the collaboration as "the most efficient and mutually beneficial way to enter the market." EPMB is a Malaysian producer of automotive parts including aluminum and plastic body components.
Xpeng intends to establish Malaysia as a key hub for growth throughout the wider right-hand-drive markets within the ASEAN area, the firm stated. Nonetheless, specifics regarding the output and models to be created in partnership with EPMB were not revealed.
Also Read: Ford, Renault Join Hands to Build Affordable EVs in Europe
Chinese electric vehicle manufacturers are increasingly focusing on international markets to enhance profitability, as they encounter significant pressure from a drawn-out price war domestically. They are also intensifying local production initiatives to lessen the effects of trade obstacles. Xpeng's endeavor in Malaysia mirrors similar efforts made earlier this year. In July, the company began assembling its X9 model in Indonesia, marking its initial production facility abroad.
Malaysia is becoming a new manufacturing center in Southeast Asia for Chinese car manufacturers, following Thailand and Indonesia. China's largest electric vehicle manufacturer BYD revealed in August its intentions to establish an electric vehicle assembly facility in Perak, Malaysia. The smaller electric vehicle company Leapmotor will begin local assembly at the current Stellantis facility in Gurun, Kedah.