Dec 15 2025, 01:13 PM
Xpeng looks to Malaysia as ASEAN production base; in talks with EPMB for CKD BEV manufacturing
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Chinese battery electric vehicle maker Xpeng said on Friday that it is in discussions with EP Manufacturing Bhd on a potential partnership to commence mass production of electric vehicles in Malaysia by 2026, as part of its global expansion strategy, according to a report by The Edge Malaysia.
In a statement, the carmaker said it plans to tap into EPMB’s existing manufacturing capacity as well as its planned expansions to support BEV production in Malaysia. EPMB is a local automotive component manufacturer specialising in plastic and aluminium body parts.
On the automotive side, EPMB has been manufacturing cars like the GWM Haval H6 and the soon-to-be-launched GWM Wey G9. Cars from BAIC, another Chinese brand, are reportedly in the pipeline too.
Xpeng added that it intends to position Malaysia as a strategic manufacturing and export base to serve right-hand-drive markets across the ASEAN region. However, the report did not disclose details on production volumes or the specific models that may be produced under the proposed collaboration.
The move comes as Chinese manufacturers increasingly look to overseas markets to improve profitability amid an intense and prolonged price war in China. Many are also accelerating localisation efforts to reduce exposure to trade barriers in key export markets.
Malaysia is increasingly positioning itself as a manufacturing base for Chinese automakers in Southeast Asia, alongside established hubs such as Thailand and Indonesia.
In August, China’s largest electric vehicle manufacturer, BYD, announced plans to set up an EV assembly plant in Perak. Meanwhile, smaller EV brand Leapmotor is preparing to begin local assembly at Stellantis’ existing facility in Gurun, Kedah.
In a statement, the carmaker said it plans to tap into EPMB’s existing manufacturing capacity as well as its planned expansions to support BEV production in Malaysia. EPMB is a local automotive component manufacturer specialising in plastic and aluminium body parts.
On the automotive side, EPMB has been manufacturing cars like the GWM Haval H6 and the soon-to-be-launched GWM Wey G9. Cars from BAIC, another Chinese brand, are reportedly in the pipeline too.
Xpeng added that it intends to position Malaysia as a strategic manufacturing and export base to serve right-hand-drive markets across the ASEAN region. However, the report did not disclose details on production volumes or the specific models that may be produced under the proposed collaboration.
The move comes as Chinese manufacturers increasingly look to overseas markets to improve profitability amid an intense and prolonged price war in China. Many are also accelerating localisation efforts to reduce exposure to trade barriers in key export markets.
Malaysia is increasingly positioning itself as a manufacturing base for Chinese automakers in Southeast Asia, alongside established hubs such as Thailand and Indonesia.
In August, China’s largest electric vehicle manufacturer, BYD, announced plans to set up an EV assembly plant in Perak. Meanwhile, smaller EV brand Leapmotor is preparing to begin local assembly at Stellantis’ existing facility in Gurun, Kedah.
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