Xpeng to Begin Mass EV Production in Malaysia
By Reuters | 12 Dec, 2025

The Chinese luxury-EV maker is in talks with EPMB to begin Malaysia production in 2026 to serve Southeast Asia's right-hand drive market.

Xpeng said on Friday that it is in negotiations to partner EP Manufacturing Bhd (EPMB) to begin mass electric vehicle production in Malaysia in 2026 as it ramps up global expansion.

Xpeng hopes to leverage EPMB's existing capacity and planned expansions for EV production in Malaysia, the Chinese company said in a statement.

EPMB is a Malaysian manufacturer of auto components such as plastic and aluminum body parts. 

Xpeng aims to make Malaysia a strategic base for expansion across the broader right-hand-drive markets in the ASEAN region, the company added.

However, details on output and models to potentially be produced in collaboration with EPMB were not disclosed. 

Chinese EV makers are increasingly targeting overseas markets to bolster profitability, as they face intense pressure from a prolonged price war in the country. They are also doubling down on local production efforts to mitigate the impact of trade barriers.

Xpeng's planned Malaysia venture follows similar initiatives earlier this year. The company started assembly of its X9 model in Indonesia in July, its first overseas production base.

In September, Magna announced it would produce Xpeng's battery-powered models at its Graz facility in Austria, a move that should help the Chinese firm bypass European Union tariffs on China-made EVs. Magna will also produce Guangzhou Automobile Group's Aion V model in the same Graz plant. 

Xpeng reported total sales of 391,937 units in the first eleven months of this year, up 156% year-on-year. Its overseas deliveries in the same period nearly doubled to 39,773 units.

Malaysia is emerging as another manufacturing hub in Southeast Asia, after Thailand and Indonesia, for Chinese automakers. 

China's biggest EV maker BYD announced in August plans to build an EV assembly plant in Perak, Malaysia. Smaller EV player Leapmotor will also start local assembly at Stellantis' existing plant in Gurun, Kedah. 

(Reporting by Zhang Yan, Casey Hall; Editing by Eileen Soreng)