Chinese electric vehicle (EV) maker Xpeng announced on Friday that it has entered negotiations with Malaysian automotive firm EP Manufacturing Bhd (EPMB) to begin mass production of electric vehicles in the country in 2026. The partnership is part of Xpeng’s broader strategy to expand its global manufacturing footprint beyond China.
Xpeng said it plans to leverage EPMB’s existing production facilities and planned expansion capacity in Melaka to build EVs locally, making Malaysia a strategic base for right-hand-drive markets in the ASEAN region. EPMB is a Malaysian manufacturer of automotive components such as plastic and aluminium body parts.
The proposed venture will mark Xpeng’s third production base outside of China, following recent overseas efforts, including assembly of the X9 model in Indonesia and plans to produce vehicles in Austria for the European market. Xpeng did not disclose specific output targets or the models that will be built in Malaysia.
Industry watchers say local EV production could help Xpeng navigate trade barriers and ease pricing pressures that result from import duties and intense competition in its home market. Chinese EV makers have increasingly focused on overseas assembly to protect margins and strengthen global presence.
Malaysia has become an emerging hub for automotive manufacturing in Southeast Asia, with several Chinese brands exploring local production partnerships. EPMB has been expanding its facilities and capabilities in vehicle assembly, boosting local industry capacity ahead of expected EV production.
Xpeng’s move underscores growing competition among EV manufacturers to capture a share of the fast-growing ASEAN market. By building vehicles locally, the company aims to reduce costs and delivery times for consumers across the region, while supporting Malaysia’s ambitions to become a regional centre for electric mobility.
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