- This marks Xpeng's second localized production project in Asia-Pacific and third globally, with mass production slated for 2026.
- EPMB subsidiary PJVM plans to commence production of the G6 on March 31, 2026, and production of the X9 on May 25, 2026.
Xpeng (NYSE: XPEV, HKG: 9868) has signed an agreement with a Malaysian partner to conduct localized vehicle assembly in the Southeast Asian country, advancing its asset-light production approach in overseas markets.
The company has entered into a strategic partnership with EP Manufacturing Bhd (EPMB), formally launching its localized production process in Malaysia, according to a statement released today.
The project marks Xpeng's second localized production initiative in the Asia-Pacific region and its third globally, with mass production slated for 2026.
The company commenced localized assembly in Indonesia this July, representing the start of its overseas vehicle production. The first Xpeng X9 MPV (multi-purpose vehicle) assembled in Indonesia was delivered to a local owner at the end of July.
In September, Xpeng's first European localized production project commenced at Magna's Graz facility in Austria, marking its second overseas manufacturing initiative.
The Austrian plant produced the first batches of Xpeng G6 and G9 SUVs (sport utility vehicles) at the time, with plans to manufacture additional Xpeng models including pure-electric platform sedans, mid-size SUVs, compact/subcompact SUVs, and hybrid models.
In Malaysia, partnering with an excellent local partner represents the most efficient and mutually beneficial market entry strategy, Xpeng said.
This enables the company to rapidly integrate its smart EV technologies with the partner's established manufacturing expertise and market insights, allowing for quicker responsiveness to Malaysian market demands, it noted.
EPMB, with over 40 years of experience, has supported mass production for multiple Chinese automakers at its Malacca plant.
Xpeng did not disclose which model will be produced first at the Malaysian facility, only stating it will select a strategic model tailored to right-hand drive market needs and equipped with the company's core intelligent technologies.
"Our goal is clear: to bring truly competitive intelligent electric vehicle products to Malaysian consumers," the company said.
According to a statement from EPMB, its wholly-owned subsidiary PEPS-JV (Melaka) Sdn Bhd (PJVM) will assemble the Xpeng G6 SUV (sport utility vehicle) and X9 MPV (multi-purpose vehicle), including the extended-range electric vehicle (EREV) version of the X9.
Production of the G6 is scheduled to commence on March 31, 2026, and conclude on December 30, 2027; production of the X9 is planned to begin on May 25, 2026, with an anticipated end in the first quarter of 2028, according to EPMB.
PJVM will charge an assembly fee per vehicle assembled, which includes fixed assembly costs and variable assembly surcharges.
Xpeng's current lineup in China includes the P7, P7+, and Mona M03 sedans; the G6, G7, and G9 SUVs; and the X9 MPV. Except for the X9, which offers both battery electric vehicle (BEV) and extended-range electric vehicle (EREV) options, all other models currently feature only BEV configurations.
The company did not mention sales targets for Malaysia, saying its focus is on long-term brand building and delivering exceptional user experiences.
"Malaysia is a strategic gateway for us to deeply cultivate the ASEAN right-hand drive market. Our primary task is to ensure that locally produced vehicles meet the same high global quality standards and to establish a comprehensive sales and service network," the company said.
Localized production in Malaysia represents one of Xpeng's efforts toward its long-term goal of achieving overseas sales contributing half of its total volume within the next decade.
From January to November, Xpeng delivered 39,773 units overseas, marking a 95 percent year-on-year increase and accounting for 10 percent of its total deliveries during the period, according to data compiled by CnEVPost.
The asset-light overseas production approach facilitates more flexible international expansion while avoiding large-scale capital expenditures.
Xpeng remains unprofitable but targets quarterly profitability in the fourth quarter this year, as does domestic peer Nio Inc (NYSE: NIO, HKG: 9866).
The company reported a net loss of RMB 380 million ($53.9 million) in the third quarter, its narrowest deficit since the third quarter 2020, according to its earnings release last month.
($1 = RMB 7.0508)
