Chinese electric vehicle giant Xpeng Inc. is set to expand its global footprint by initiating EV production in Malaysia in 2026 through a strategic partnership with EP Manufacturing Bhd (EPMB). This move marks a significant step in Xpeng’s international growth strategy, targeting right-hand-drive markets across Southeast Asia.
Partnership with EPMB
Xpeng is currently in negotiations with EPMB, a Malaysian manufacturer specializing in automotive components such as plastic and aluminum body parts. The partnership will leverage EPMB’s existing production capabilities and planned expansions to assemble Xpeng vehicles locally. This collaboration is expected to enhance Malaysia’s position as a regional EV manufacturing hub, catering to both domestic demand and exports to neighboring ASEAN markets.
Strategic Global Expansion
The Malaysia facility is part of Xpeng’s broader global expansion strategy. In 2025, Xpeng began assembly of its X9 model in Indonesia and partnered with Magna in Austria to produce vehicles for the European market. By establishing a manufacturing presence in Malaysia, Xpeng aims to strengthen its supply chain, optimize logistics for right-hand-drive markets, and increase competitiveness internationally.
Boosting Overseas Deliveries
Xpeng has reported strong sales growth, delivering 391,937 units in the first eleven months of 2025, a 156% increase compared to the previous year. Overseas deliveries have nearly doubled to 39,773 units, highlighting the company’s increasing focus on international markets. The Malaysia production hub is expected to further accelerate exports and meet growing EV demand in Southeast Asia.
Positioning Malaysia as a Key EV Hub
Malaysia is emerging as a strategic destination for EV manufacturing in the region, following initiatives by companies like BYD and Leapmotor. The collaboration between Xpeng and EPMB underscores the country’s potential as a manufacturing base for right-hand-drive EVs, supporting the broader adoption of electric mobility in ASEAN markets.
This move strengthens Xpeng’s vision of global EV expansion, local production, and sustainable mobility solutions, positioning the company as a key player in the rapidly growing international electric vehicle sector.
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