Xpeng Malaysia still exploring CKD plans as gov’t policies are not clear; Indonesian CKD confirmed

Following the launch of the Xpeng X9 yesterday, the topic of local assembly (CKD) came up during a Q&A session with senior officials involved with the Chinese brand. According to Bermaz Auto group CEO Datuk Francis Lee Kok Chuan, this is still being explored, echoing what was said at the launch of the G6 last August.

“It would be good if the government can come up with more defined policies so all the auto players or OEMs can decide whether Malaysia should be an automotive hub for the ASEAN region,” Lee said. At present, fully-imported (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.

“Having said that, I’m sure we will do some sort of CKD in our country and we will probably just exchange with some of our neighbours, which is the best solution. If one country does all the CKD (for one brand), and exports to another country that doesn’t CKD (that brand), but is a CKD country itself, then there is a lot of issues to address,” he added.

Lee also mentioned that Bermaz Xpeng, the local distributor of the brand in Malaysia, is currently working with Xpeng to come up with a CKD programme. “As for the models, we haven’t decided yet because over the next one year or so, they are going to launch another few more models. We are able to choose what is most suitable for the Malaysian market before we embark on this CKD programme,” he elaborated.

It has already been announced that local assembly of Xpeng vehicles will start in Indonesia in the second half of this year, with the G6 and X9 being the first models to be part of that CKD programme.

“In Indonesia, seven-seat affordable MPVs are popular there, while we lean more to sedans and SUVs, so we can exchange. So, when they say that they are doing some CKD programme in Indonesia, it makes sense because it cannot just be one country doing all the products, it won’t happen,” Lee concluded

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