Malaysia Becomes Xpeng’s First Right-Hand-Drive EV Production Base

Chinese electric vehicle manufacturer Xpeng Motors has officially signed a cooperation agreement with Malaysian manufacturing conglomerate EPMB Group to establish local production operations in Malaysia. The announcement was made on December 15, 2025.

This marks Xpeng’s third overseas manufacturing project, following earlier initiatives in Indonesia and Austria, and represents the company’s first production facility dedicated to right-hand-drive (RHD) vehicles.

According to the agreement, local production is scheduled to begin in 2026. Initial assembly will focus on the Xpeng G6 electric SUV and the X9 electric MPV, including extended-range variants. The Malaysian plant is expected to serve as a regional manufacturing hub for RHD markets across the ASEAN region.

The new facility will complement Xpeng’s existing plant in Indonesia, which primarily caters to left-hand-drive markets. Together, the two sites will allow Xpeng to support a wider range of Southeast Asian markets through localized production.

Market data cited by Chinese automotive media outlet Autohome highlights Xpeng’s growing presence in Malaysia. From January to October this year, the brand ranked among the country’s top six pure electric vehicle manufacturers. The Xpeng X9, in particular, recorded strong demand, leading the premium electric MPV segment in September.

With operations now spanning China, Southeast Asia, and Europe, Xpeng has established what it describes as a “triangular architecture,” becoming the first Chinese new-energy vehicle startup to achieve a global manufacturing footprint across these regions.

The partnership is also supported by existing business ties. Bermaz Auto, Xpeng’s official distributor in Malaysia, holds an 11.54 percent stake in EPMB through its subsidiary Bermaz Capital, enabling close collaboration between the companies.

The timing of the agreement aligns with Malaysia’s evolving EV policy framework. Tax exemptions for imported electric vehicles are set to expire on December 31, 2025, while locally assembled EVs will continue to benefit from tax incentives until December 31, 2027. Assembly of the Xpeng G6 is expected to begin by March 31, 2026, followed by production of the X9 MPV around May 25, 2026.