Quick Takeaways
- XPeng confirms Malaysia as its next overseas localized EV manufacturing base to scale ASEAN operations.
- The facility will anchor right-hand-drive EV production, regional distribution, and potential R&D expansion from 2026.
On December 15, 2025, XPeng Malaysia manufacturing expansion emerged as a major strategic step as the Chinese electric vehicle maker confirmed plans to establish its next overseas localized production base in Malaysia. The move reinforces XPeng’s long-term ambition to scale its presence across Southeast Asia and improve regional supply responsiveness.
XPeng Malaysia Manufacturing Expansion Targets ASEAN Scale
The initiative was formalized through a partnership with Malaysia’s EPMB Group, enabling XPeng to move forward with its third localized manufacturing project outside China. This development follows earlier overseas production programs in Indonesia and Austria, underscoring the company’s phased and region-specific global manufacturing strategy.
Right-Hand-Drive Production to Anchor Regional Distribution
Mass production at the Malaysia facility is scheduled to begin in 2026. The plant is designed to serve as a central manufacturing and distribution hub for right-hand-drive vehicles, addressing demand across ASEAN markets where such configurations are standard. Localized production is expected to improve delivery timelines and cost efficiency.
Key focus areas for the facility include:
Manufacturing Strategy Aligned With Regional Growth
XPeng’s overseas manufacturing roadmap reflects a broader industry trend toward regionalized production. By placing manufacturing closer to end markets, automakers can better navigate regulatory differences, import duties, and evolving customer expectations. This approach also strengthens supply chain resilience across geographically diverse markets.
Technology and R&D Functions Under Evaluation
Beyond vehicle production, XPeng is assessing opportunities to expand research and technology capabilities within ASEAN. Malaysia is being evaluated as a potential regional innovation hub, supporting software development, vehicle localization, and next-generation EV technologies. This combination of manufacturing, distribution, and potential R&D positions Malaysia as a cornerstone of XPeng’s Southeast Asia strategy, supporting both near-term market expansion and longer-term technological competitiveness.
XPeng Malaysia Manufacturing Expansion Targets ASEAN Scale
The initiative was formalized through a partnership with Malaysia’s EPMB Group, enabling XPeng to move forward with its third localized manufacturing project outside China. This development follows earlier overseas production programs in Indonesia and Austria, underscoring the company’s phased and region-specific global manufacturing strategy.
Right-Hand-Drive Production to Anchor Regional Distribution
Mass production at the Malaysia facility is scheduled to begin in 2026. The plant is designed to serve as a central manufacturing and distribution hub for right-hand-drive vehicles, addressing demand across ASEAN markets where such configurations are standard. Localized production is expected to improve delivery timelines and cost efficiency.
Key focus areas for the facility include:
- Assembly of right-hand-drive electric vehicles
- Regional logistics and parts distribution
- Scalability to support multiple ASEAN markets
Manufacturing Strategy Aligned With Regional Growth
XPeng’s overseas manufacturing roadmap reflects a broader industry trend toward regionalized production. By placing manufacturing closer to end markets, automakers can better navigate regulatory differences, import duties, and evolving customer expectations. This approach also strengthens supply chain resilience across geographically diverse markets.
Technology and R&D Functions Under Evaluation
Beyond vehicle production, XPeng is assessing opportunities to expand research and technology capabilities within ASEAN. Malaysia is being evaluated as a potential regional innovation hub, supporting software development, vehicle localization, and next-generation EV technologies. This combination of manufacturing, distribution, and potential R&D positions Malaysia as a cornerstone of XPeng’s Southeast Asia strategy, supporting both near-term market expansion and longer-term technological competitiveness.
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