Xpeng Mulls CKD Plans In Malaysia

XPeng has reaffirmed its commitment to Malaysia with the launch of the Xpeng X9. At a recent press conference, Bermaz Auto’s Group CEO, Datuk Francis Lee, and Xpeng’s Vice President of Finance & Overseas Strategic Support Office, James Wu, shared insights on the company’s future plans.

They touched on CKD potential, upcoming models, AI advancements, and the expansion of an ultra-fast charging network.

While CKD operations are confirmed for Indonesia, Malaysia’s potential depends on long-term government policies. The current CKD tax exemption ends in 2027, making short-term investments impractical. XPeng’s CKD team is currently in Malaysia, working with policymakers to evaluate the market landscape.

If the policies remain unclear, Bermaz may look to neighboring countries to assemble XPeng vehicles, ensuring competitive pricing and accessibility for Malaysian consumers.

According to Wan Zarel Harun, Head of Operations at Bermaz XPeng Sdn Bhd, another key concern is the open market value (OMV) excise duties. These were initially set to increase last year but have been deferred twice, now expected to take effect next year.

If implemented, CKD vehicle prices could rise by 10-30%, significantly reducing the price gap between CKD and fully imported CBU models. This could lead consumers to opt for CBU vehicles, making CKD efforts less viable.

James Wu emphasized that Malaysia remains a key market for XPeng. The G6 has been well-received by young families aged 35 to 40-plus, while the X9’s modern MPV design is expected to appeal to a broader audience, offering an alternative to the traditional boxy MPV look.

Dato’ Francis added that several future models are under review, including the XPeng Mona. However, the only model currently being strongly considered is a smaller SUV, likely the G3i, which could attract urban drivers looking for a compact yet advanced EV.

When questioned on XPeng AI driving technology’s feasibility in the Malaysian context, James Wu detailed that, as an AI-driven company, XPeng continues to invest heavily in advanced vehicle intelligence. Its vehicles are equipped with sensors, cameras, and LiDAR to ensure smooth operation in different driving conditions.

The company is actively refining its AI to better adapt to Malaysian roads and traffic patterns, enhancing both safety and the driving experience.

Alex Tang, Head of the International Division of Sales and Service, meanwhile, confirmed that XPeng is also working on an ultra-fast charging network in Southeast Asia with local partners. Hong Kong, Australia, and Thailand have already been confirmed, and in Malaysia, XPeng is collaborating with Bermaz to assess the feasibility of deploying its charging stations.

The goal is to provide Malaysian customers with a seamless ownership experience, including access to XPeng’s proprietary high-speed chargers for a complete ownership experience.

XPeng’s route to expansion in Malaysia depends on multiple factors, including CKD policies, new model launches, AI innovations, and charging infrastructure. Long-term regulatory clarity will be crucial for investment.

Despite these challenges, XPeng remains committed to delivering high-tech EVs with advanced AI and charging capabilities, ensuring they remain accessible and competitive in the Malaysian market.