XPeng Eyes Malaysia as Southeast Asia AI and Tech Hub

Chinese EV maker XPeng Inc is deepening its commitment to Malaysia, setting its sights on making the country both a regional base for artificial intelligence (AI) and technology development, and a hub for local vehicle assembly (CKD) in Southeast Asia.

Speaking to The Edge during the Asean Business and Investment Summit on Oct 26, XPeng vice-chairman Dr Brian Gu said the company is in active talks with the Malaysian government and local industry players to explore long-term collaboration opportunities.

“We are actively talking to the Malaysian government and stakeholders to see how Malaysia can serve as a hub,” Gu said. “Localisation is important, and with Malaysia’s advanced semiconductor industry, strong talent and ecosystem, it’s a good base for AI and smart technology development.”

Gu added that XPeng is keen to tap into Malaysia’s growing EV ecosystem, particularly in developing next-generation technologies such as autonomous driving and smart cabin systems, which are core to the brand’s future EV platforms.

At the local level, XPeng’s plans for CKD production were further reinforced during the launch of the refreshed 2025 XPeng G6 earlier this month. Bermaz Auto group CEO Datuk Francis Lee confirmed that feasibility studies for local assembly have been completed, with CKD operations expected to begin in the second half of 2026.

Francis also highlighted that with the government’s full import and excise-duty exemptions for fully built (CBU) EVs ending this year, while CKD incentives continue until 2027, localisation has become essential to remain competitive. 

“Without incentives, EV prices could rise by at least 20–30%,” he said, noting that Bermaz plans to bring in additional CBU units before the exemptions expire.

XPeng, which entered Malaysia in 2024 with the G6 SUV and later the X9 MPV, has sold nearly 1,000 units as of Sept 2025, ranking fifth among EV brands nationwide. If realised, Malaysia would become XPeng’s second Southeast Asian production base after Indonesia, which began assembling the X9 MPV earlier this year.

Beyond manufacturing, XPeng is also expanding its regional charging footprint. The company recently partnered with Singapore’s Charge+ to build a 5,000 km cross-border charging corridor linking Singapore, Malaysia, and Thailand. Its XPeng Charging Overseas team is now engaging with local charge point operators for future integration to offer seamless charging access for owners.

With local assembly, AI development and regional infrastructure partnerships on the horizon, XPeng’s growing presence reflects its confidence in Malaysia’s EV ecosystem, and the country’s emerging role as a strategic technology hub for the brand’s Southeast Asian expansion.