At today’s launch of the Xpeng G6 facelift, the question of local assembly (CKD) was brought up again in light of incentives for fully-imported (CBU) electric vehicles (EVs) set to come to an end this year.
Answering the question, Bermaz Auto group CEO Datuk Francis Lee Kok Chuan said that based on what the company is aware of at the moment, the government has no plans to extend the incentives for CBU EVs moving forward. Currently, CBU EVs are exempted from import and excise duties until the end of 2025, while CKD EVs enjoy excise duty and sales tax exemption until December 31, 2027. All Xpeng models sold in Malaysia, including the updated G6, are imported from China.
On the matter of an Xpeng CKD project, Lee said the Chinese carmaker has completed its studies on a CKD project and is currently working with local parties to realise it. As a On Bermaz Xpeng’s (the brand’s sole distributor here) side, the company is currently deciding whether to bring in more cars before the end of the year.
“We are currently in the planning stage at the moment, but for sure we will bring some cars to mitigate the reduction in volume going forward because car prices will be very expensive [without incentives],” he explained. “So, for those of you who haven’t own an EV, it’s better to buy one now because it’s going to expensive. I think the price is going to increase by at least 20-30% minimum,” he added.
Lee noted that there are plans for Xpeng vehicles to be assembled here, likely in the second half of 2026. As for where this will happen, he did not give a definitive location. At present, Bermaz Auto owns a stake in Inokom, which has a plant in Kulim, Kedah that also manufactures Mazdas and models of other brands.
Last September, EP Manufacturing (EPMB) placed out shares representing 30% of its issued share capital, with 15% going towards its largest shareholder, Mutual Concept, while the other half went to Bermaz Capital, a subsidiary of Bermaz Auto – this will see the company own a 11.54% stake in EPMB.
Indonesia has already started its Xpeng CKD project, with the X9 being the first model to roll off the line at PT Handal Indonesia Motor’s (HIM) plant in Purwakarta, West Jawa. With Malaysia set to have its own, Xpeng could have an even bigger price advantage over Tesla, which is unlikely to pursue CKD operations here. The new G6 starts at RM179,708, undercutting its rival, the Model Y, which starts from RM195,450.
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tax holiday ends, china is coming in to throw price and wipe out other non chinese EV manufacturers.