XPENG (NYSE:XPEV) announced a significant strategic partnership with Malaysian manufacturer EP Manufacturing Berhad (EPMB), officially launching plans for localized Electric Vehicle (EV) production in Malacca.
This collaboration, with mass production scheduled to begin in 2026, represents a key step in XPENG's global expansion strategy, marking its third global localized production project and its second in the Asia-Pacific region.
The venture is designed to create an integrated ecosystem encompassing production, sales, charging services, and user operations across the wider Asia-Pacific and European markets.
It aims to leverage EPMB’s extensive manufacturing expertise—backed by over four decades as a Tier 1 supplier—to produce intelligent EVs specifically tailored for Malaysian and ASEAN (Association of Southeast Asian Nations) consumers.
The move to local assembly comes as XPENG sees rapid growth in its international footprint.
The company reported overseas deliveries of 39,773 units between January and November 2025, a robust 95% year-on-year increase.
Its overseas network now spans 52 countries and features 321 outlets, underscoring the growing importance of international sales to its overall volume.