Malaysia is rapidly establishing itself as a key player in Southeast Asia’s electric vehicle manufacturing sector. The first locally assembled XPENG G6 recently rolled off the line at EP Manufacturing Berhad’s facility in Melaka, marking a significant milestone for the country’s automotive industry. This development is part of a broader trend, with multiple international and domestic brands investing in local production and infrastructure.
XPENG and EPMB Launch Local Production
In June, the first Malaysian-built XPENG G6 was unveiled at the HICOM Pegoh Industrial Park, less than six months after XPENG and EP Manufacturing Berhad (EPMB) signed an agreement to localize production. The partnership covers the G6 electric SUV and the X9 premium MPV, including the range-extended PowerX REEV variant. EPMB also secured the first right to assemble three future XPENG models, indicating a long-term commitment to Malaysia as a manufacturing base.
XPENG’s global strategy includes manufacturing in China, expanding localized production in Indonesia, and assembling vehicles for Europe through Magna Steyr in Austria. Malaysia now joins this select group of international production sites supporting XPENG’s global expansion.
A Growing EV Ecosystem
Malaysia’s appeal as an EV manufacturing hub is bolstered by its established automotive industry, experienced supplier base, and supportive government policies. The country’s history of producing right-hand-drive vehicles for both domestic and export markets adds to its attractiveness for automakers.
Several other manufacturers are following XPENG’s lead. Leapmotor has chosen Malaysia as its ASEAN production base via Stellantis’ facility in Gurun, Kedah. MG has started local assembly of the S5 EV with EPMB in Melaka, while Great Wall Motor and BYD have also announced or begun local manufacturing operations. Domestic automaker Proton is expanding its electrified lineup, leveraging technology from Geely after launching the e.MAS 7.
Infrastructure and Policy Support
Malaysia is investing in EV infrastructure alongside manufacturing. Kuala Lumpur’s Merdeka 118 recently opened the country’s largest AC charging hub, offering 32 charging bays. Highway charging networks are expanding through operators such as chargEV, Gentari, and JomCharge, and destination charging is becoming more common at commercial developments.
Government policy has played a key role in this growth. Initial tax incentives helped stimulate demand and attract manufacturers, while recent policies focus on local value creation through assembly, component manufacturing, and technology development.
Competitor Comparison
Malaysia’s EV market features strong competition among both domestic and international brands. The Proton e.MAS 5, priced at $14,687 (~AUD 21,187), is currently the country’s best-selling EV, dominating local registrations in 2026. The BYD Dolphin is also among the top affordable EVs, reflecting the strong presence of Chinese brands. Meanwhile, the Tesla Model 3 remains a popular choice among international models, contributing to a diverse and competitive landscape for Malaysian consumers.
Historical Context
Malaysia’s automotive sector has shown steady growth, with 789,547 vehicles sold in 2023, representing a 2% year-on-year increase. Production capacity reached 790,347 units per year in 2024. EV sales in Malaysia rose by 130% to 8,570 units in 2024, highlighting the rapid adoption of electric vehicles and the country’s growing importance as a regional manufacturing center.
Why this matters
Malaysia’s emergence as an EV manufacturing hub is significant for both the regional and global automotive industries. The country’s ability to attract major international brands and support domestic innovation demonstrates the effectiveness of its industrial policies and infrastructure investments.
As more automakers establish local production and the government continues to support the sector, Malaysia is well-positioned to play a leading role in Southeast Asia’s transition to electric mobility.
What this means for buyers
For Malaysian consumers, the growth of local EV manufacturing means increased access to a wider range of electric vehicles, potentially at more competitive prices due to reduced shipping costs and local incentives. Buyers can expect more advanced models, improved after-sales support, and expanding charging infrastructure across the country.
Those considering an EV purchase should watch for new model launches from both domestic and international brands, as well as ongoing government incentives and infrastructure developments.
Related coverage from The Electric Viking
For more on Malaysia’s evolving EV landscape, see Malaysia’s New EV Import Policy Limits Access for BYD and Other Chinese Brands, Xpeng Begins Local Assembly of G6 SUV in Malaysia, and Kuala Lumpur and Penang Surpass Annual EV Charger Deployment Targets Early.
Key Specs
- First Malaysian-built XPENG G6: Rolled off EPMB’s Melaka line in June 2026
- XPENG G6 Platform: 800-volt SEPA 2.0 architecture
- Charging Hub Capacity: 32 charging bays at Merdeka 118, Kuala Lumpur
- Proton e.MAS 5 Price: $14,687 (~AUD 21,187)
- 2023 Vehicle Sales: 789,547 units (+2% YoY)
- 2024 Production Capacity: 790,347 units/year
- 2024 EV Sales Growth: 8,570 units (+130% YoY)
Source
Images sourced from: cleantechnica.com, arenaev.com, carsondisplay.com
