Xpeng said in a statement that it is negotiating with Melaka-based EP Manufacturing Bhd (EPMB) to produce electric vehicles in Malaysia by 2026, reports The edge. The Chinese carmaker says it wants to make Malaysia a strategic base for right-hand drive ASEAN expansion.
In September, EPMB issued shares representing 30% of the issued share capital. 15% went to the largest shareholder, Mutual Concept. The remaining 15% went to Bermaz Capital, a subsidiary of Bermaz Auto – this will see the company own an 11.54% stake in EPMB. Bermaz distributes Xpeng in Malaysia.
While nothing has been announced about the models that will be assembled in Malaysia, Xpeng currently sells the G6 SUV and
Previously just a Tier-1 components supplier, EPMB currently assembles cars on contract for Great Wall Motor (GWM), BAIC and will soon do so for MG. Just days ago it entered ‘Phase 2′, increasing annual production capacity from 6,000 to 30,000 units as the first GWM Wey G9 rolled off the production line.
Squeezed by brutal price wars at home and geopolitically driven trade barriers, Chinese EV makers have little choice but to look outward, and it’s not enough to just export; they are working hard to establish production bases all over the world. In Malaysia, fully imported (CBU) EVs will no longer be tax-free from next year (which could lead to their prices rising by 30-100%), and so those who want to remain competitive will have to assemble their EVs in the country.
Automakers already producing electric cars in Malaysia include Proton, Perodua, Volvo, Chery, Mercedes-Benz and TQ Wuling. BYD is planning a factory in Tanjong Malim, Zeekr could do so in DRB-Hicom’s Automotive Hi-Tech Valley (also in Tanjong Malim) and Leapmotor is expected to use Stellantis’ Gurun factory. For brands whose factories won’t be ready in 2026, expect some price increases for unsold CBU shares.
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