Chinese electric-vehicle maker XPENG Inc. (NYSE:XPEV) is expanding its presence in Southeast Asia with plans to begin local EV production in Malaysia. The initiative centers on a new manufacturing project in Malacca and is scheduled to reach mass production in 2026.
Building on this regional move, XPENG has partnered with local automotive group EP Manufacturing Berhad to execute the project, combining XPENG’s smart-EV technology with EPMB’s decades of manufacturing experience. The collaboration is designed to support vehicles adapted to Malaysian and broader ASEAN demand.
The Malaysian site will be XPENG’s third localized production effort globally and its second in the Asia-Pacific region. The facility will complement XPENG’s operations in Europe and neighboring markets, supporting a connected ecosystem for manufacturing, sales, charging, and customer service.
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This project also aligns with Malaysia’s push for a greener economy and advanced manufacturing. By supporting the country’s new energy vehicle supply chain, it is expected to boost skilled employment.
Management Commentary
Commenting on the collaboration, XPENG Vice President James Wu said, “Establishing local production project in Malaysia is a significant milestone in XPENG’s global strategy and underscores our long-term commitment to the ASEAN region”.
“EPMB’s proven capabilities and shared vision make them an ideal partner. This initiative allows us to be closer to our customers, accelerate market responsiveness, and systematically introduce our intelligent technologies, driving forward our mission of ‘Democratizing Technology’ on a global scale.”
Overseas Growth And Network Expansion
XPENG is accelerating its global expansion, with overseas deliveries rising 95% year over year to 39,773 units from January to November 2025. The company now operates a sales and service network across 52 countries and regions, supported by 321 overseas outlets.
XPEV Price Action: XPeng shares were up 0.11% at $19.00 during premarket trading on Monday, according to Benzinga Pro data.
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