Chinese electric vehicle manufacturer XPeng is exploring Malaysia as a potential hub for artificial intelligence and technology development in Southeast Asia, leveraging the country's semiconductor expertise, skilled workforce, and established ecosystem for integrated circuit design.
XPeng Vice-chairman Dr. Brian Gu revealed the company is in active discussions with the Malaysian government and industry partners to explore opportunities for AI-driven technologies, including autonomous driving systems and smart cabin integration for its electric vehicles.
The automaker's local partner, Bermaz Auto Bhd, has completed feasibility studies for assembling XPeng vehicles locally and targets to begin completely knocked down (CKD) assembly operations by the second half of 2026 as part of the expansion strategy.
XPeng's Southeast Asian focus intensifies as Chinese EV manufacturers face steep European Union tariffs of up to 45.3 percent aimed at protecting local manufacturers, prompting the company to view the region as a more favorable market for growth and technology deployment.
Dr. Brian Gu emphasized that XPeng sees strong potential in Malaysia's advanced semiconductor sector and technology development capabilities, aligning with the country's push to position itself as a regional electric vehicle manufacturing and innovation hub.
