XPENG (NYSE:XPEV) announced a significant strategic partnership with Malaysian manufacturer EP Manufacturing Berhad (EPMB), officially launching plans for localized Electric Vehicle (EV) production in Malacca.
This collaboration, with mass production scheduled to begin in 2026, represents a key step in XPENG's global expansion strategy, marking its third global localized production project and its second in the Asia-Pacific region.
The venture is designed to create an integrated ecosystem encompassing production, sales, charging services, and user operations across the wider Asia-Pacific and European markets.
It aims to leverage EPMB’s extensive manufacturing expertise—backed by over four decades as a Tier 1 supplier—to produce intelligent EVs specifically tailored for Malaysian and ASEAN (Association of Southeast Asian Nations) consumers.
The move to local assembly comes as XPENG sees rapid growth in its international footprint.
The company reported overseas deliveries of 39,773 units between January and November 2025, a robust 95% year-on-year increase.
Its overseas network now spans 52 countries and features 321 outlets, underscoring the growing importance of international sales to its overall volume.
By establishing a production base in Malacca, XPENG aims to deepen its integration into the regional market, enhance responsiveness to consumer demands, and strengthen its competitive edge in right-hand-drive markets.
The collaboration is also positioned to support Malaysia’s New Energy Vehicle (NEV) industrial ecosystem, contributing to high-value job creation and the government’s green economy agenda.
The Malaysia facility follows XPENG's prior overseas manufacturing initiatives in Indonesia and Austria, underscoring its shift toward an "asset-light" manufacturing model to navigate international trade barriers and increase market penetration.
The initial models slated for assembly include the G6 and X9 EVs, according to filings by EPMB.