XPeng Just Opened a Factory in Malacca
XPeng just opened a factory in Malacca. Malaysia just tightened EV import rules. The timing isn’t a coincidence. On June 24, XPeng’s CKD assembly plant in Malacca, Malaysia went into production. First model off the line: the right-hand-drive G6. Partner: EP Manufacturing Bhd, a listed Malaysian automaker.
The agreement was signed in December 2025. Factory operational in six months. No greenfield investment. No new buildings. XPeng simply used EPMB’s existing production line, shipped knockdown kits from China, and applied its own quality control standards. Light asset. Fast cycle. Low capital exposure.
Meanwhile, on July 1 — one week after the factory started — Malaysia’s new CBU import rules took effect. Fully imported EVs now face a minimum CIF value of RM200,000 and minimum motor output of 180kW. The previous tax exemption for imported EVs expired at the end of 2025.
Full duties restored: 30% import, 10% excise, 10% sales tax. This is the structural shift I’ve been tracking for the past year. The Chinese EV brands that adapt fastest to CKD-led, partner-enabled, capital-light localization will hold the advantage in ASEAN, the Middle East, Africa, and eventually Europe.
The ones still trying to win on export price alone will watch markets close one regulation at a time. XPeng’s Malacca plant matters not because of its current 737 units sold in Malaysia year-to-date.
It matters because it represents a playbook: find a local partner with an existing line, sign a CKD deal, and be in production before the regulatory window shifts. Six months from agreement to output. That speed is the competitive advantage.
