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Xpeng said on Friday that it has partnered with EP Manufacturing Bhd (EPMB) to start mass electric vehicle production in 2026 in Malaysia, marking its third production base outside China as it ramps up global expansion.
Xpeng will leverage EPMB’s existing capacity and planned expansions for EV production in Malaysia, the Chinese company said in a statement, describing the partnership as “the most efficient and mutually beneficial way to enter the market.”
EPMB is a Malaysian manufacturer of auto components such as plastic and aluminum body parts.
Xpeng aims to make Malaysia a strategic base for expansion across the broader right-hand-drive markets in the ASEAN region, the company added.
However, details on output and models to be produced in collaboration with EPMB were not disclosed.
Chinese EV makers are increasingly targeting overseas markets to bolster profitability, as they face intense pressure from a prolonged price war in the country. They are also doubling down on local production efforts to mitigate the impact of trade barriers.
Xpeng’s Malaysia venture follows similar initiatives earlier this year. The company started assembly of its X9 model in Indonesia in July, its first overseas production base.
In September, Magna announced it would produce Xpeng’s battery-powered models at its Graz facility in Austria, a move that should help the Chinese firm bypass European Union tariffs on China-made EVs. Magna will also produce Guangzhou Automobile Group’s Aion V model in the same Graz plant.
Xpeng reported total sales of 391,937 units in the first eleven months of this year, up 156 per cent year-on-year. Its overseas deliveries in the same period nearly doubled to 39,773 units.
Malaysia is emerging as another manufacturing hub in Southeast Asia, after Thailand and Indonesia, for Chinese automakers.
China’s biggest EV maker BYD announced in August plans to build an EV assembly plant in Perak, Malaysia. Smaller EV player Leapmotor will also start local assembly at Stellantis’ existing plant in Gurun, Kedah.
