In a bold move set to shake up Southeast Asia’s electric vehicle landscape, Xpeng partners with Malaysia’s EPMB to launch local EV production in 2026. This exciting collaboration promises to combine Xpeng’s cutting-edge EV technology with EPMB’s manufacturing expertise, potentially transforming Malaysia into a key EV hub. As Chinese automakers look beyond domestic markets, this venture sparks curiosity: which models will roll out first, and how will it impact the region’s EV growth?
Under the partnership, EPMB will contribute its expertise in automotive manufacturing, particularly in producing plastic and aluminum body components, while Xpeng brings its advanced EV technology to the table. Although specific details regarding output and the models to be manufactured in Malaysia have not been disclosed, the initiative is expected to serve as a strategic base for Xpeng to expand into broader right-hand-drive markets across the ASEAN region.
This move aligns with a broader trend among Chinese EV manufacturers who are increasingly targeting overseas production to boost profitability. With intense domestic competition and prolonged price wars in China, local production abroad helps these companies navigate trade barriers and diversify their revenue streams. Xpeng’s Malaysian venture follows a series of international initiatives: in July, the company began assembly of its X9 model in Indonesia, marking its first overseas production base. Furthermore, in September, Magna announced it would produce Xpeng’s battery-powered models at its facility in Graz, Austria, enabling the firm to bypass European Union tariffs on China-made EVs.
The timing of this move also coincides with Xpeng’s strong sales growth. The company reported 391,937 units sold in the first eleven months of 2025, representing a 156% year-on-year increase. Overseas deliveries nearly doubled to 39,773 units, reflecting the company’s rising global footprint.
From a financial perspective, Xpeng’s stock (XPEV) is trading at $18.99 USD on the NYSE as of December 12, 2025, while EPMB’s shares are priced at 0.415 MYR on the Kuala Lumpur Stock Exchange. Both stocks have shown high volatility over the past three months, reflecting investor reactions to these expansion strategies and the broader EV market dynamics.
Malaysia is increasingly emerging as a manufacturing hub for Chinese automakers in Southeast Asia, joining the ranks of Thailand and Indonesia. With Xpeng and EPMB’s partnership, the country is poised to play a crucial role in the region’s EV ecosystem, supporting local production, job creation, and the adoption of sustainable mobility solutions.
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