XPENG to Start Native Meeting in Malaysia by Mid-2026

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XPENG is increasing into the Southeast Asia area, because it simply signed an settlement with Malaysian industrial companion EP Manufacturing Berhad (EPMB) to start native meeting operations in Malacca, with manufacturing scheduled to start in 2026, the businesses introduced Thursday.

The announcement got here after XPENG introduced on December 12 that EPMB would concern a inventory trade announcement, after which the ultimate info got here to Chinese language automotive journalists on December 15.

The partnership marks XPENG’s third worldwide manufacturing initiative and follows a rising pattern of Chinese language automakers establishing manufacturing amenities throughout Southeast Asia to navigate commerce obstacles and seize market share within the area’s increasing EV sector.

Underneath the settlement filed Monday with regulators, EPMB will start assembling XPENG’s G6 electrical SUV by March 31, 2026, adopted by the X9 minivan—together with its extended-range hybrid model—by Might 25, 2026, at amenities within the state of Malacca. The deal contains provisions for EPMB to safe first rights to assemble three further XPENG fashions.

The transfer positions XPENG alongside rival Chinese language producers racing to determine footholds in Malaysia’s automotive sector. BYD, the world’s largest EV maker, introduced plans in August to construct a 600,000-square-meter meeting plant in Tanjung Malim, Perak, set to start manufacturing in late 2026. Stellantis-backed Leapmotor and state-owned automakers together with BAIC and SAIC have additionally partnered with native producers for Malaysian meeting operations.

Malaysia has emerged as a strategic hub for Chinese language EV makers looking for entry to right-hand-drive (RHD) markets throughout Southeast Asia. The nation affords important tax incentives for domestically assembled automobiles, together with full exemptions from import duties, excise duties, and gross sales tax for utterly knocked down (CKD) EVs till December 31, 2027—two years longer than incentives for totally imported automobiles, which expire on the finish of 2025.

There are extra RHD markets in the entire of Asia, and particularly within the ASEAN area.

The federal government has set bold targets for electrification, aiming for EVs to symbolize 20 p.c of recent automobile gross sales by 2030, rising to 38 p.c by 2040. As of 2025, electrical automobiles account for roughly 4 p.c of Malaysia’s automotive market.

XPENG’s Malaysian enterprise follows the corporate’s September launch of meeting operations at Magna Steyr’s facility in Graz, Austria, designed to avoid European Union tariffs on Chinese language-made EVs. The automaker additionally started knock-down meeting in Indonesia in July, producing the X9 minivan at a facility operated by Handal Indonesia Motor in Purwakarta, West Java.

The Guangzhou-based firm has accelerated its worldwide enlargement considerably in 2025. From January by means of November, XPENG delivered 39,773 automobiles to abroad markets, representing a 95 p.c year-over-year enhance. The corporate now operates 321 gross sales and repair retailers throughout 52 international locations, up from simply 30 markets on the finish of 2024.

XPENG entered the Malaysian market in August 2024 by means of distributor Bermaz Xpeng, opening its first showroom in Glenmarie, Kuala Lumpur. The corporate presently sells two right-hand-drive fashions in Malaysia: the G6 SUV, priced from RM 178,888 ($42,270), and the X9 MPV, which has turn out to be the best-selling automobile in its phase in Malaysia, Thailand, and Hong Kong.

EPMB, which has over 40 years of expertise as a Tier 1 automotive provider, has quickly expanded its automobile meeting capabilities. The corporate has already produced greater than 6,000 items of the Nice Wall (GWM) H6 hybrid since breaking floor on its first meeting part in late 2023. Pilot manufacturing for BAIC automobiles was accomplished in November 2025, with full manufacturing starting in January 2026, whereas MG automobile meeting is anticipated to begin in February 2026.

“This strategic alliance combines EPMB’s over 4 many years of automotive manufacturing excellence and native insights with XPENG’s cutting-edge intelligence and electrification improvements,” stated Hamidon bin Abdullah, founder and govt chairman of EPMB, in a press release.

James Wu, vp of XPENG in a press assertion, described the Malaysian initiative as central to the corporate’s long-term aim of reaching abroad gross sales equal to half its complete quantity throughout the subsequent decade. “Malaysia is a strategic gateway for us to deeply domesticate the ASEAN right-hand drive market,” Wu stated.

XPENG didn’t disclose manufacturing capability targets or gross sales projections for the Malaysian facility, stating its focus stays on long-term model improvement and making certain domestically produced automobiles meet international high quality requirements.

The partnership displays Malaysia’s evolving place within the international automotive provide chain as worldwide producers search alternate options to China-based manufacturing amid geopolitical tensions and escalating commerce restrictions in key markets, together with the USA and European Union.