The trend of Chinese automakers establishing local assembly (CKD) operations in Malaysia continues to gain momentum. Most recently, Great Wall Motor (GWM) rolled out the locally assembled Wey 9 PHEV at EP Manufacturing Bhd (EPMB). Now, Xpeng is set to follow suit, having begun discussions with EPMB to explore CKD operations in the country.
This development comes after EPMB announced the opening of its second manufacturing plant, aimed at meeting growing demand from new automotive brands. With the expansion, EPMB’s annual production capacity will increase significantly from 6,000 units to 30,000 units. A third plant has also been confirmed and is scheduled to commence operations in 2026.
The timing appears strategic, as tax exemptions for fully imported (CBU) electric vehicles (EVs) are set to expire starting next year. Adding to this, Caricarz reported that during the launch of the Xpeng G6 facelift, Bermaz Auto Group CEO Datuk Francis Lee said the government currently has no plans to extend these incentives beyond 2025.
While Xpeng has yet to reveal which models will be assembled locally, the brand has already established a solid presence in Malaysia. The automaker recorded total sales of 391,937 units in the first eleven months of this year, representing a 156% year-on-year increase.
Xpeng’s move into Malaysia follows its earlier overseas manufacturing initiatives. In July, the company began assembling its X9 model in Indonesia, marking its first production base outside China.
Additionally, in Europe, the contract manufaturer Magna Steyr is set to produce Xpeng EVs at its Graz facility in Austria, allowing the brand to sidestep European Union tariffs on China-made vehicles.This is the same engineering firm that collarated with Perodua for the QV-E model.
