Chinese electric vehicle maker Xpeng is in negotiations with EP Manufacturing Bhd (EPMB) to begin electric vehicle production in Malaysia, with mass production expected to start in 2026, local media reported.
Xpeng told the press in Malaysia that the proposed facility would not only serve the domestic market but also supply right-hand-drive vehicles across Southeast Asia. “EPMB is a Malaysian manufacturer of auto components such as plastic and aluminum body parts,” The Edge Malaysia reported. “Xpeng hopes to leverage EPMB’s existing capacity and planned expansions for EV production in Malaysia, the Chinese company said in a statement.”
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Neither Xpeng nor EPMB disclosed details on production volumes, investment size or which models could be assembled locally.
The Malaysia talks follow Xpeng’s recent push to localise production outside China. In July, the company began assembling vehicles in Indonesia, its first manufacturing site overseas, where it is producing the X9 multi-purpose vehicle.
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Xpeng has also been expanding its sales footprint in Southeast Asia. In October, it launched an updated version of its X9 MPV in Malaysia, followed by the introduction of the 2025 G6 electric SUV, marking the model’s regional debut. The launches coincided with Xpeng’s first anniversary in the Malaysian market.
The company’s global expansion comes as deliveries continue to rise sharply. Xpeng said sales for the first 11 months of the year rose 156% year-on-year to 391,937 vehicles, supported by strong demand in China and growing overseas shipments.