RM25 Million Boost for Kedah Plant! Stellantis Kickstarts Local CKD Assembly Lines for Leapmotor EVs

If you’ve been keeping a close eye on the local electric vehicle scene, things just got a whole lot more exciting up north!

Stellantis Malaysia has announced that local assembly (CKD) operations for Leapmotor vehicles have officially kicked off at its fully owned manufacturing facility in Gurun, Kedah!

The big-money news? Stellantis, which holds a major global stake in Leapmotor, has poured over RM25 million (€5.33 million) into upgrading the infrastructure and setting up advanced production lines at the Gurun plant.

The announcement dropped during a major distribution signing ceremony where automotive retail giant Cycle & Carriage officially stepped up to handle Leapmotor's sales, customer experience, and aftersales operations nationwide.

If you're wondering what this massive RM25 million local boost means for your wallet and your future garage, here is the full breakdown:

1. The Flagship C10 is Already Rolling Off the Line! 

The Gurun plant isn't just getting ready, the assembly lines are already humming. Stellantis ASEAN Managing Director Isaac Yeo revealed that CKD production for the brand’s flagship Leapmotor C10 actually began between April and May this year. Pre-production models are expected to line off as early as next month!

To make sure these tech-heavy EVs meet flawless global quality standards, the local factory workforce underwent specialized training to safely handle advanced high-voltage vehicle architectures rated up to 800V.

2. The Highly Anticipated B10 is Next in Line (And It’s Weeks Away!) 

For those waiting for Leapmotor's smaller, ultra-accessible model, your patience is about to pay off. Yeo confirmed that the Leapmotor B10 compact SUV is slated to join the Gurun assembly line in just two to three months.

Having a major global factory right in our backyard means supply lines will be incredibly steady once the B10 hit the streets in full force.

3. The Reality Check: Why "Made in Kedah" Doesn't Mean Cheaper 

Here is a bit of a plot twist that might surprise everyday buyers: don't expect a massive price cut just because the cars are built locally.

Stellantis intends to match the recommended retail prices (RRP) of the new CKD versions with the vehicle's original tax-free introductory price (continuing from RM149,005 for the C10).

But here is why that is actually a massive win: the government's tax-free holiday for imported EVs officially ended on January 1, 2026. On top of that, MITI’s strict new rules starting July 1 mean imported EVs must meet a minimum value that will likely push showroom prices of all overseas imports above RM300,000!

Instead of slashing floor prices, kicking off CKD assembly in Gurun is a genius strategic shield. It locks in cost competitiveness and permanently protects Malaysian buyers from getting hit by those massive global import penalties and tax hikes!

4. Global Ambitions: Shipping Vehicles "Way Beyond" ASEAN 

The Gurun facility is a massive asset, boasting an annual production capacity of 60,000 units. While the immediate focus is supplying high-quality EVs to Malaysian buyers, exporting has always been the ultimate long-term goal.

Stellantis ASEAN MD Isaac Yeo pointed out that Malaysia currently lacks a mature battery ecosystem and special tax incentives under the ASEAN Free Trade Area (AFTA) to export EVs to our immediate neighbors. But despite these tough regional roadblocks, Stellantis is pushing forward anyway, pivoting its strategy to bypass the immediate neighborhood and export these Kedah-built cars beyond ASEAN to global markets once deeper localization happens. 

5. What’s Hiding Down the Pipeline? 

The excitement doesn't stop with the C10 and B10. Tucked away at the end of the announcement was a teaser for what's next: Leapmotor is already planning the Malaysian arrival of the B03X (known in China as the A10). Plus, the plant's flexible architecture means it could even accommodate Range-Extended Electric Vehicles (REEVs) in the future.

With Cycle & Carriage expanding the brand's footprint to 12 sales outlets and multiple service centers across major hubs like Glenmarie, Penang, and Johor Bahru, Leapmotor is rapidly planting its roots deep into Malaysian soil.

Read: Leapmotor C10 Plus Debuts In Malaysia - 299 hp, 510 km Range, From RM139k

Read: Launched: Leapmotor B10 EV – Two CBU Variants, From RM99,800*