Chinese electric vehicle (EV) maker Xpeng is advancing plans to expand its global footprint with a potential manufacturing base in Malaysia. According to a statement issued on 12 December, the company is currently in negotiations with Malaysian auto components manufacturer EP Manufacturing Bhd (EPMB) to establish mass production of EVs in the country beginning in 2026.
Strategic Expansion Into Right-Hand-Drive Markets
Xpeng intends to leverage EPMB’s existing production capacity and planned facility expansions as part of its strategy to penetrate broader right-hand-drive markets across Southeast Asia. EPMB, an established manufacturer of automotive plastic and aluminium body parts, would provide foundational industrial infrastructure for the venture. While discussions are underway, the companies have not yet disclosed specifics such as production volumes or the particular models that might be assembled locally in Malaysia.
Chinese EV Makers Target Overseas Production
The push into Malaysia comes amid a broader trend of Chinese electric vehicle companies seeking overseas production hubs. Domestic pricing pressures and intense competition at home have driven manufacturers to diversify operations abroad, while also mitigating potential trade barriers such as tariffs.
Earlier this year, Xpeng opened its first international assembly operation in Indonesia with the X9 model, marking a key milestone in its regional expansion strategy. Additionally, European production arrangements with manufacturing partner Magna aim to circumvent European Union tariffs and facilitate broader access to Western markets.
Malaysia’s Growing Role in EV Manufacturing
Malaysia is emerging as a strategic manufacturing hub in Southeast Asia for electric vehicles, following the footsteps of regional leaders like Thailand and Indonesia. The country has already attracted investment from China’s largest EV maker, BYD, which announced plans for an EV assembly plant in Perak, and from smaller players such as Leapmotor, which is gearing up for local assembly in Kedah.
One of Xpeng's latest EV releases in Malaysia is the Xpeng G6. Available in three variants, the lineup starts with the RWD Long Range Pro priced at RM179708 (on-the-road, without insurance). You can read more about the EV in our news coverage right here, and stay tuned for more trending tech news at TechNave.com.
COMMENTS