XPENG moves into Malaysian manufacturing as ASEAN expansion accelerates

Shanghai (Gasgoo)- On December 15, XPENG announced it has signed an agreement with Malaysia's EPMB Group to launch localized vehicle production in the country, marking another major step in its global manufacturing expansion. The Malaysian facility will become XPENG's third overseas localization project, following earlier initiatives in Indonesia and Austria.

Mass production is scheduled to begin in 2026, with the site positioned as a strategic hub to supply right-hand-drive markets across the ASEAN region.

Malaysia has rapidly emerged as a key growth market for XPENG's overseas business. In September, the XPENG X9 topped sales in the country's premium electric MPV segment. Over the first ten months of the year, XPENG also ranked among the top six pure electric vehicle brands by cumulative sales locally, outperforming a number of established competitors and highlighting its rising market presence.

The broader ASEAN auto market is entering a period of rapid expansion, with Malaysia standing out in particular. In the second quarter of this year, the country's vehicle sales overtook Indonesia's for the first time, placing Malaysia at the top of the regional rankings.

At the same time, Malaysia's battery electric vehicle (BEV) market is scaling up at an exceptional pace. BEV sales surged by more than 200% year on year in 2024, with penetration rising sharply—an indication that the market is transitioning from early adoption to mass growth.

Beyond its role as a regional consumption hub, Malaysia offers a well-established automotive supply chain and supportive policies for localized manufacturing, making it an increasingly attractive base for intelligent electric vehicle production.

The decision to advance localized manufacturing overseas reflects XPENG's long-term "local for local" strategy, under which the company aims to embed itself more deeply in each market it enters.

By producing vehicles closer to end markets, XPENG seeks to grow alongside local consumers, deliver intelligent products better tailored to regional preferences, and play a more active role in shaping the future of electrification in those markets.

XPENG has moved swiftly this year to roll out its overseas localization strategy. Within a six-month span, the company advanced three production projects globally: its first overseas localized manufacturing site went live in Indonesia in July; in September, its first European localized production began at Magna's facility in Graz, Austria, alongside the opening of a Munich-based R&D center; and the Malaysia project now marks its third global and second Asia-Pacific localization initiative.

The combination of localized manufacturing and an expanding global R&D network is becoming a key driver of XPENG's accelerating overseas growth.

From January to November 2025, XPENG delivered 39,773 vehicles outside China, representing a year-on-year surge of 95%. Its global sales and service footprint now spans 52 countries and regions, supported by 321 overseas outlets, while nine R&D centers worldwide continue to underpin its technology development.