XPeng (XPEV) Taps Malaysian Partner for Local EV Production Is Its Global Strategy Evolving?

• In December 2025, XPeng announced a partnership with EP Manufacturing Berhad to start localized production of its intelligent EVs in Malacca, Malaysia, with mass production targeted for 2026 as part of a broader Asia-Pacific and European ecosystem build-out.
• This move uses EPMB’s local manufacturing strength and market knowledge to tailor XPeng models to Malaysian and ASEAN buyers while supporting Malaysia’s green industrial ambitions and local high-skilled job creation.
• We’ll now examine how XPeng’s localized EV production push in Malaysia could influence its existing international expansion-focused investment narrative.

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XPeng Investment Narrative Recap

To own XPeng, you need to believe it can turn rapid EV volume growth and software innovation into sustainable profitability while funding heavy global expansion. The Malaysia production deal reinforces its international growth catalyst but also underlines the near term risk of ongoing losses and capital needs if new plants take time to scale. Overall, the announcement supports the story rather than changing the main drivers in the short term.

Among recent announcements, XPeng’s growing collaboration with Volkswagen on E/E architecture feels especially relevant here, because it highlights a parallel path to higher margin, software and IP based income while the company invests in physical capacity in markets like Malaysia and Indonesia. If XPeng can balance capital intensive overseas manufacturing with monetizing its technology through partners such as Volkswagen, that could be an important offset to the risk of prolonged cash burn.

Yet while the Malaysia push may help XPeng diversify revenue and scale faster, investors should still be aware of the risk that...

Read the full narrative on XPeng (it's free!)

XPeng's narrative projects CN¥137.4 billion revenue and CN¥6.4 billion earnings by 2028.

Uncover how XPeng's forecasts yield a $28.24 fair value, a 44% upside to its current price.

Exploring Other Perspectives

Sixteen members of the Simply Wall St Community currently value XPeng between US$9.86 and US$40.51 per share, highlighting very different expectations. Against that wide range, XPeng’s push into localized production and deeper international exposure raises important questions about execution risk, pricing pressure and how quickly those efforts can support a move toward sustainable profitability.

Explore 16 other fair value estimates on XPeng - why the stock might be worth over 2x more than the current price!

Build Your Own XPeng Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your XPeng research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free XPeng research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate XPeng's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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