Xpeng Mulling CKD Production in Malaysia by H2 2026

Xpeng has confirmed its interest in starting its own local assembly operations in Malaysia by the second half of 2026.

During the launch of the new 2025 Xpeng G6 facelift earlier today, Chinese EV marque Xpeng confirmed its interest in starting its own local assembly (CKD) operations here in Malaysia, in the midst of the tax exemption expiry for fully imported (CBU) EVs, which is set to come to an end this year.

Speaking to local media representatives, Bermaz Auto (BAuto) group CEO Datuk Francis Lee said that as of now the government has no plans to extend the incentives for CBU EVs from 2026 onwards. To date, all Xpeng models on sale in Malaysia by BAuto are fully imported from China, including the newly-launched G6 facelift.

On the topic of the Xpeng CKD plan, Datuk Francis said that the Guangzhou-based EV marque has completed its feasibility studies to establish its own local assembly operations here in Malaysia and is now in talks with local partners to materialise the plan.

With Xpeng’s CKD operations now seeming to be officially confirmed, Bermaz Xpeng, which is the brand’s sole distributor here in Malaysia, is currently deciding whether to bring in more CBU units here before the end of the tax exemption this year.

Bermaz Auto Group CEO Datuk Francis Lee

“We are currently in the planning stage at the moment, but for sure we will bring some cars to mitigate the reduction in volume going forward because car prices will be very expensive without the incentives,” he explained.

“So, for those of you who haven’t owned an EV, it’s better to buy one now because it’s going to be expensive. I think the price is going to increase by at least 20-30% minimum,” the group CEO added.

Datuk Francis also noted that should Xpeng get their CKD plans running, the automaker could start its operations as early as the second half of 2026. As for where the operation will take place, the CEO did not give any specific location, at least for now.

Indonesia becomes the first Asian market outside of China for Xpeng to open its own CKD operations, with the X9 EV MPV.

Should this CKD plan materialise, Malaysia will become the second market in Southeast Asia to locally assemble Xpeng vehicles, with Indonesia being the first one to do so earlier this year with the X9 luxury EV MPV.

Besides the CKD plan, Xpeng also recently expanded its regional charging infrastructure through its first partnership with Singapore's Charge+. Led by the Xpeng Charging Overseas team, this partnership will see a 5,000 km cross-country charging network built from Singapore to Thailand via Malaysia.

In Malaysia, the XPeng Charging Overseas team will also soon be in discussions with other local charge point operators (CPOs) for similar partnerships. Once in fruition, this partnership will benefit Xpeng owners through seamless charging map integration in the near future.