[Update 5pm: The partnership has now been confirmed. The title and text below have been updated to reflect the update]
Chinese carmaker XPeng has announced its partnership with EP Manufacturing Bhd (EPMB) for the local assembly (CKD) of its vehicles in Malaysia.
According to a Bursa Malaysia announcement dated today, the partnership will see the XPeng G6 and X9 – including the PowerX range extender electric vehicle (REEV) – being locally assembled in EPMB’s plant in Melaka.
Production for the XPeng G6 is expected to begin on 31 March 2026, while works for the X9 will start two months later on 25 May 2026. The models are also expected to reach End of Production (EOP) by 30 December 2027 and Q1 2028 respectively.
Aside from vehicle assembly, the partnership will also include a Framework Assembly Agreement, with EPMB granted “first right of offer” for the assembly of “three subsequent XPeng models”, including the “D02 and D03” models – though information on these still remain scarce.
This development follows EPMB’s announcement recently regarding the commencement of “Phase 2” of its operations at the Melaka assembly plant. Expanding the contract manufacturing facility will see its annual production capacity increase to 30,000 units, up from the current 6,000 units.
The partnership also makes Malaysia XPeng’s third overseas production location, following the establishment of manufacturing hubs in Austria and Indonesia. The Indonesian facility, which began operations in July 2025, currently assembles the XPeng X9.
A joint release states that “through this partnership, XPeng will leverage EPMB’s extensive local manufacturing expertise, proven production capacity and deep market knowledge to produce advanced intelligent EVs tailored to Malaysian and ASEAN consumer needs.”
“Establishing local production in Malaysia is a significant milestone in XPeng’s global strategy and underscores our long-term commitment to the ASEAN region. EPMB’s proven capabilities and shared vision make them an ideal partner. This initiative allows us to be closer to our customers, accelerate market responsiveness and systematically introduce our intelligent technologies,” said XPeng Vice President, James Wu.
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“This strategic alliance combines EPMB’s over four decades of automotive manufacturing excellence and local insights with Xpeng’s cutting-edge intelligence and electrification innovations. Together, we are committed to delivering high-quality, intelligent EVs to Malaysian consumers and supporting the nation’s sustainable industrial ambitions,” EPMB founder and executive chairman, Hamidon Abdullah, added.
Bermaz Auto, through its wholly-owned subsidiary Bermaz Capital, has also recently acquired 11.54% of shares in EPMB, making it the second largest shareholder behind Hamidon Abdullah.
XPeng currently offers two models in Malaysia. These are the XPeng G6, priced from RM179,708 to RM190,708, and the XPeng X9, which is priced from RM270,708 to RM300,708.
The end of the tax exemptions for fully imported EVs, which is set to expire by the end of 2025, has undoubtedly pushed more brands towards local assembly of their electric vehicles in Malaysia. Aside from XPeng, EPMB has also recently signed a partnership agreement with MG Motor Malaysia to assemble EVs in the same facility.
The Melaka plant also currently assembles the GWM Haval H6 HEV and Wey G9 PHEV, the latter being the first facility to do so outside of China. Starting next year, BAIC is also reportedly set to begin mass production of the X55 and BJ40 Plus SUVs there.
Tax exemptions for locally assembled EVs will remain until 31st December 2027.
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