Xpeng in talks with EPMB to CKD EVs in Malaysia

Xpeng has said in a statement that it is negotiating with Melaka-based EP Manufacturing Bhd (EPMB) to produce EVs in Malaysia in 2026, reports The Edge. The Chinese carmaker says it aims to make Malaysia a strategic base for ASEAN right-hand drive expansion.

In September, EPMB placed out shares representing 30% of its issued share capital. 15% went to its largest shareholder, Mutual Concept. The other 15% went to Bermaz Capital, a subsidiary of Bermaz Auto – this will see the company own a 11.54% stake in EPMB. Bermaz distributes Xpeng in Malaysia.

While nothing has been announced regarding the models that will be assembled in Malaysia, Xpeng currently sells the G6 SUV and X9 MPV in the country – the latter became the first Xpeng model to be produced outside of China when the Indonesian-assembled car surfaced in July, and the former could also be manufactured in the republic in the future.

Formerly just a Tier-1 component supplier, EPMB currently contract-assembles cars for Great Wall Motor (GWM), BAIC and will do soon for MG. Just days ago, it entered ‘Phase 2‘ – boosting annual production capacity from 6,000 to 30,000 units as the first GWM Wey G9 rolled off the line.

Squeezed by brutal price wars at home and geopolitically-driven trade barriers, Chinese EV makers have little choice but to look outwards, and it’s not enough to just export; they are working hard to establish production bases around the world. In Malaysia, fully-imported (CBU) EVs will no longer be tax-free from next year (which could cause their prices to jump by 30-100%), and so those who want to stay competitive will have to assemble their EVs in the country.

Carmakers already producing EVs in Malaysia include Proton, Perodua, Volvo, Chery, Mercedes-Benz and TQ Wuling. BYD is planning a plant in Tanjong Malim, Zeekr could do it at DRB-Hicom’s Automotive Hi-Tech Valley (also in Tanjong Malim) and Leapmotor is expected to use Stellantis’ Gurun plant. For brands whose plants are not yet ready come 2026, expect some price hikes for unsold CBU stock.

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