Malaysia: Xpeng to sell locally assembled EVs from 2026

Aiming for a stronger foothold in Southeast Asia, Xpeng plans to localise its EVs in Malaysia from 2026, following a similar move in Indonesia earlier this year. It will pursue an asset-light strategy, outsourcing local assembly operations rather than setting up its own facility.

Xpeng has formed a tie-up with EP Manufacturing Berhad for the new initiative. According to the Framework Assembly Agreement (FAA), PEPS-JV (Melaka) Sdn Bhd (PJVM), a subsidiary of the Malaysian company, will assemble Xpeng EVs at its plant in Malacca.

The FAA states that PJVM will assemble both the Xpeng EVs that Xpeng currently sells in Malaysia, the G6 and X9, as well as the upcoming X9 EREV, indirectly confirming the launch of the future extended-range electric MPV in the country. Xpeng will pay a fixed assembly fee and a variable assembly surcharge for each vehicle assembled.

PJVM will start assembling the G6 by 31 March 2026 and the X9 by 25 May 2026. The company expects to end these operations by 30 December 2027 and the first quarter of 2028, respectively. Xpeng has given a minimum order commitment to PJVM, although neither party has disclosed the figure in the publicly released documents.

Commenting on the new step forward in Xpeng’s global strategy, Vice President James Wu said, “Establishing local production project in Malaysia is a significant milestone in XPENG’s global strategy and underscores our long-term commitment to the ASEAN region.” Hamidon bin Abdullah, Founder and Executive Chairman of EPMB, said, “This strategic alliance combines EPMB’s over four decades of automotive manufacturing excellence and local insights with XPENG’s cutting-edge intelligence and electrification innovations.”

Even in Indonesia, Xpeng has appointed a contract manufacturer for localised production. Handal Indonesia Motor assembles the X9 at its plant in Purwakarta, West Java. Outside Southeast Asia, Xpeng has collaborated with Magna to localise production for European markets. The Austrian contract manufacturer assembles the G6 and G9 from semi-knocked-down (SKD) kits at its local facility in Graz.

Xpeng operates in 52 countries and regions worldwide and has reported a sharp rise in overseas sales this year. The company sold 39,773 units in markets outside China between January and November, and while that may not be a significant volume, it represents a remarkable 95 per cent year-on-year growth.

xiaopeng.com, bursamalaysia.com