Xpeng to launch first assembly line in Malaysia for right-hand drive markets

Xpeng Motors has officially signed a cooperation agreement with Malaysian manufacturing conglomerate EPMB Group to establish local production operations in Malaysia, the company announced on December 15, 2025. This marks Xpeng’s third international manufacturing project following similar initiatives in Indonesia and Austria, and represents the company’s first RHD vehicle assembly line.

According to the agreement, production is scheduled to begin in 2026, initially focusing on assembly of the G6 SUV and X9 MPV models, including extended-range versions. The Malaysian facility is strategically positioned to serve as a manufacturing hub for right-hand drive markets across the ASEAN region.

The new factory will complement Xpeng’s existing Indonesian plant, which primarily serves left-hand drive markets, creating a production network covering the entire Southeast Asian region.

Market data quoted by Chinese auto media Autohome reveals Xpeng’s growing presence in Malaysia, where it ranked among the top six pure electric vehicle brands in the country from January to October this year. The Xpeng X9 particularly demonstrated strong market acceptance, capturing the top spot in Malaysia’s premium electric MPV segment in September.

Xpeng has established what it calls a “triangular architecture” spanning China, Southeast Asia, and Europe—becoming the first among China’s NEV startups to achieve such a global manufacturing footprint.

The partnership leverages existing business relationships, as Bermaz Auto—Xpeng’s official distributor in Malaysia—holds an 11.54% stake in EPMB through its subsidiary Bermaz Capital, facilitating a natural collaboration between the companies.

Editor’s comment

The timing of this agreement is strategic, as Malaysia’s tax exemptions for imported electric vehicles are set to expire on December 31, while locally assembled EVs will continue to enjoy tax benefits until December 31, 2027. The G6 electric SUV assembly is expected to commence by March 31, 2026, followed by X9 minivan production beginning around May 25, 2026.