XPENG Launches EV Production in Malaysia, Aiming for ASEAN Market Leadership

XPENG's Strategic Move in ASEAN

On December 15, 2025, XPENG, a prominent player in the electric vehicle (EV) industry, announced its entry into a strategic partnership with EP Manufacturing Berhad (EPMB) to establish a local EV production facility in Malacca, Malaysia. This initiative is significant not only for XPENG but also for the evolving automotive landscape in Southeast Asia. The partnership is set to begin mass production in 2026, marking XPENG's third localization project globally and its second in the Asia-Pacific region, after previous initiatives in Indonesia and Austria.

The new facility will serve as a hub for the production of innovative and intelligent electric vehicles tailored to the needs of Malaysian consumers. By leveraging EPMB’s expertise in manufacturing and deep understanding of the local market, XPENG aims to enhance responsiveness and strengthen its competitive position within the region. This collaboration is indicative of XPENG's commitment to integrating more deeply into regional markets, creating an ecosystem that encompasses production, sales, charging services, and user operations.

James Wu, Vice President of XPENG, emphasized the importance of this partnership in the company's global strategy. “Establishing local production in Malaysia is not only a milestone for XPENG but also underlines our long-term dedication to the ASEAN market,” he remarked. With EPMB's robust manufacturing capabilities and aligned vision, the partnership is poised to facilitate the introduction of XPENG’s cutting-edge technologies closer to consumers, thereby advancing the mission of democratizing technology on a global scale.

Hamidon bin Abdullah, Founder and Executive Chairman of EPMB, also expressed enthusiasm about the collaboration. He stated that the alliance merges EPMB's four decades of automotive manufacturing excellence with XPENG’s innovative EV technology. They aim to meet domestic consumer demands while supporting Malaysia's ambitions for a sustainable industrial economic landscape.

Construction of the production facility is expected to contribute significantly to the local economy, driving enhancements in Malaysia’s New Energy Vehicle (NEV) industrial ecosystem while creating skilled job opportunities for the local workforce. Furthermore, the venture aligns with Malaysia’s overarching goal of fostering a green economy and elevating its manufacturing capabilities.

Notably, XPENG's growth trajectory is impressive; as of November 2025, the company recorded 39,773 overseas deliveries, reflecting a staggering 95% year-on-year increase. With service networks extending to 52 countries and 321 outlets globally, the new production site in Malaysia is anticipated to integrate seamlessly with XPENG's existing operations in Europe and other markets, thus furthering its extensive market penetration.

This partnership highlights XPENG's resilience and strategic foresight in navigating the evolving landscape of the global automotive industry. The firm's commitment to innovation, combined with local production capabilities, underscores a promising outlook for the future of electric mobility in Malaysia and beyond.

About EP Manufacturing Berhad (EPMB)

Established as a diversified investment holding group, EPMB specializes in automotive manufacturing and engineering, boasting over 40 years of experience. As a Tier 1 supplier to various international automotive brands, the group possesses mature quality control systems and extensive component manufacturing expertise, committed to upgrading Malaysia’s manufacturing sector through innovative partnerships.

About XPENG

Founded in 2014, XPENG is an AI-driven mobility company dedicated to developing smart electric vehicles that cater to tech-savvy consumers. The company’s mission is to drive the smart EV revolution through groundbreaking technologies and a robust focus on customer experience. With headquarters in Guangzhou and significant offices worldwide, XPENG is poised to shape the future of mobility while adhering to high standards of innovation and competence.