Xpeng cooperates with EPMB, the third overseas factory established in Malaysia

[PCauto] On December 15, Xpeng reached a cooperation agreement with Malaysian automotive parts manufacturer EP Manufacturing Berhad (EPMB) to establish a localized production project in Malaysia, targeting mass production by 2026.

This marks Xpeng's third overseas localized production project globally, following Indonesia and Austria, and it's also the first complete vehicle assembly production line in the Southeast Asia region.

According to an announcement released by EPMB on December 12, the agreement was signed between its wholly-owned subsidiary and Xpeng.

The two parties will collaborate on specific vehicle projects in Malaysia, encompassing R&D, manufacturing, production, and complete vehicle assembly.

Xpeng will utilize the Completely Knocked-Down (CKD) assembly model, leveraging EPMB's existing production facilities for vehicle assembly.

The assembly will be handled by PEPS-JV (Melaka) Sdn Bhd, a subsidiary of EPMB.

Regarding vehicle planning and production timelines, the two parties have provided clear deadlines:

- Xpeng G6: Production start targeted for March 31, 2026

- Xpeng X9: Production start targeted for May 25, 2026

- An extended-range electric vehicle (EREV) variant of the X9 is also in the pipeline.

The above vehicle models will mainly be produced in right-hand drive versions, primarily targeting the Malaysian market and serving as an important product foundation for Xpeng's subsequent expansion into other right-hand drive countries in Southeast Asia.

Regarding the partner's background, EPMB's core business originally centered on automotive parts manufacturing, with its product portfolio covering plastic modules, aluminum components, and body structural parts. In recent years, the group has started to extend into the complete vehicle manufacturing sector.

Before collaborating with Xpeng, EPMB had already partnered with China's Great Wall Motors (GWM) to locally assemble and produce various electric vehicle and SUV models in Malaysia, gradually building its vehicle assembly capabilities.

The implementation of the Xpeng project thus further deepens EPMB's involvement in complete electric vehicle production.

Regionally, Malaysia is increasingly becoming an important manufacturing hub for Chinese automakers in Southeast Asia. Earlier, BYD also announced plans to build a CKD assembly plant in Malaysia, which is expected to start production in 2026.

Currently, Malaysia's tax exemption for imported Completely Built-Up (CBU) electric vehicles is set to expire on December 31, 2025.

From 2026 onward, only locally assembled (CKD) electric vehicle models will continue to enjoy tax exemption benefits, with the policy extended until December 31, 2027.

In this policy context, localized production has become a critical prerequisite for automakers to enter and sustain operations in the Malaysian market.

Within Xpeng's overall globalization strategy, Malaysia is positioned as a strategic base for expansion into the ASEAN market. The company's early overseas operations started in Europe and then gradually expanded to Southeast Asia and the Australian markets, adopting a "direct operation + partner collaboration" model, establishing experience centers in key cities complemented by local distribution networks.

Between January and November 2025, Xpeng's cumulative sales reached 391,900 units, a year-on-year increase of 156%; during the same period, overseas deliveries reached 39,800 units, representing a year-on-year doubling. Its overseas sales network had expanded to cover 52 countries and regions, with a total of 321 outlets globally.

According to its plan, Xpeng will launch seven new models in 2026, covering both pure electric and extended-range powertrains. The company aims to gradually increase the contribution of overseas markets to its total sales through localized production, R&D, and channel development, targeting a goal of 20%.