Chinese electric vehicle maker Xpeng said it has officially entered into a strategic partnership with EP Manufacturing Berhad (EPMB) to establish localized vehicle production in Malacca, Malaysia, with mass production scheduled to begin in 2026.
The project will mark Xpeng’s third localized manufacturing initiative globally and its second in the Asia-Pacific region, following earlier projects in Indonesia and Austria, the company said. The Malaysian facility is designed to complement Xpeng’s existing operations in Europe and across the Asia-Pacific region, supporting an integrated ecosystem that combines localized production, sales, charging services and user operations.
Under the agreement, Xpeng will leverage EPMB’s local manufacturing expertise, production capacity and market knowledge to assemble intelligent electric vehicles tailored to Malaysian and broader ASEAN market demand. Localized production is expected to improve supply-chain responsiveness and strengthen the automaker’s competitive position in the region.
See also: Xpeng Delivers 36,728 Vehicles in November, Down 12.58% Month on Month
The partnership aligns with Malaysia’s push to develop a green economy and advance high-end manufacturing capabilities, and is expected to support the growth of the country’s new energy vehicle ecosystem and create skilled employment opportunities, the companies said.
Xpeng’s Malaysia project follows its first overseas manufacturing initiative, launched in Indonesia in July, where the company began assembling vehicles and is producing the X9 multi-purpose vehicle. The Indonesian facility marked a key step in Xpeng’s strategy to localize production closer to key growth markets.
See also: Xpeng Launches X9 EREV MPV With 452 km Electric Range, 1,602 km Total Range and 210 kW Motor
The automaker has also been expanding its sales footprint across Southeast Asia. In October, Xpeng introduced an updated version of the X9 MPV in Malaysia, followed by the regional debut of the 2025 G6 electric SUV. The launches coincided with Xpeng’s first anniversary in the Malaysian market.
Xpeng said the Malaysia production project will further support its overseas expansion. From January to November 2025, the company delivered 39,773 vehicles outside China, up 95% from a year earlier, with its sales and service network spanning 52 countries and regions.
