Bermaz Xpeng: Customer Confidence Over Price Wars; 5 Dealers by Oct

In a recent press engagement during the Xpeng G6 launch, representatives from Bermaz Xpeng and Xpeng Motors outlined their strategic plans for Malaysia’s electric vehicle (EV) market.

The partnership between Xpeng and Bermaz marks a significant milestone in Malaysia’s automotive landscape. Bermaz Xpeng is carefully studying the Malaysian market to ensure that both current and future product offerings align with local demands without compromising on quality.

Alan Ma, Director of Overseas Product Planning at XPENG Inc., also hinted at the future introduction of the G6 dual-motor variant and other right-hand drive models. Based on recent news about its upcoming launch of the Xpeng X9 in Thailand, we at Carz.com.my believe this will soon make its way to Malaysia as well.

Dato Francis Lee, Group CEO of Bermaz Auto Berhad, emphasised that despite the influx of other Chinese automotive brands and the ensuing price wars, Bermaz Xpeng remains committed to maintaining its credibility—much like its successful approach with Mazda.

He also noted that Xpeng vehicles will be competitively priced from the outset, and Bermaz Xpeng has no intention of engaging in price-cutting exercises that could undermine brand value and erode customer confidence. Both Bermaz and Xpeng believe in building brand equity and focusing on the customer ownership experience rather than merely chasing sales volume.

Wan Zarel Harun, Head of Operations at Bermaz Xpeng Sdn Bhd, assured customers that they would soon have convenient access to sales and service centres. He announced that the Glenmarie and Penang Taman Irama dealerships are already operational, with additional locations in Johor Bahru, Melaka, and Negeri Sembilan expected by the end of Sept and early Oct.

He also highlighted that the cost of ownership of XPeng vehicles would be significantly lower than that of internal combustion engine (ICE) vehicles, as EVs require minimal servicing. For instance, first-year service costs, which only include system checks and tire rotations, are expected to be about RM200. This approach not only reduces the cost of ownership but also reflects the brand’s commitment to providing a hassle-free experience for EV owners.

While Xpeng has no immediate plans to introduce its own charging infrastructure in Malaysia, Bermaz Xpeng has partnered with DC Handal and ChargEV to ensure that customers have access to reliable charging options. Additionally, the implementation of a "plug and charge" system is being explored, with discounted charging rates potentially available exclusively for Xpeng owners.

When questioned on the brands Completely Knocked Down (CKD) efforts, Datuk Francis noted that the Malaysian government has yet to provide clear guidelines for EV localisation. The current low volume of EV offerings does not justify the cost implications involved. Nevertheless, Bermaz and Xpeng are proactively exploring possibilities. A dedicated team from Xpeng China will be stationed in Malaysia to assess the feasibility of localisation, despite challenges such as high battery costs and the lack of economies of scale.

With deliveries set to begin in Oct, Bermaz Xpeng is poised to make a significant impact on the local EV landscape with a well-priced, high-quality initial offering and is clearly focused on ensuring that their entry into Malaysia is not just another chapter in their global expansion, but a cornerstone of their long-term success.