XPENG Inc. (XPEV) is planting its flag in Malaysia, marking the latest chapter in the Chinese EV maker's Southeast Asian expansion story. The company is kicking off local production in Malacca with plans to hit mass production by 2026, which would make this its third localized manufacturing operation worldwide and its second in the Asia-Pacific region.
The strategy here makes sense: get closer to the customer, move faster on local demand, and sidestep some of the logistics headaches that come with shipping vehicles across continents. XPENG isn't going it alone either. The company has teamed up with EP Manufacturing Berhad, a local automotive group with decades of manufacturing chops. The idea is to marry XPENG's smart-EV technology with EPMB's production know-how to build vehicles tailored for Malaysian and broader ASEAN markets.
This Malaysian facility will slot into XPENG's growing global footprint, complementing operations in Europe and other markets. The company is building out what it calls a connected ecosystem spanning manufacturing, sales, charging infrastructure, and customer service. It's the full package approach.
Why Malaysia, Why Now
The project aligns neatly with Malaysia's own ambitions for a greener economy and more advanced manufacturing capabilities. By anchoring part of the new energy vehicle supply chain locally, XPENG's move is expected to create skilled jobs and support the country's industrial development goals.
XPENG Vice President James Wu framed it as a milestone moment: "Establishing local production project in Malaysia is a significant milestone in XPENG's global strategy and underscores our long-term commitment to the ASEAN region."
He added, "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, driving forward our mission of 'Democratizing Technology' on a global scale."
The Bigger Picture
XPENG's international push is gaining real momentum. Overseas deliveries surged 95% year over year to 39,773 units from January through November 2025. The company now operates across 52 countries and regions, backed by a network of 321 overseas outlets. That's a lot of ground covered in a relatively short time.
For context, this Malaysian production facility represents another piece in XPENG's puzzle of becoming a genuinely global EV player rather than just a China-focused manufacturer with some exports.
XPEV Price Action: XPeng shares were up 0.11% at $19.00 during premarket trading on Monday.