EP Manufacturing to open new facility in Melaka, accelerating MY's vision as regional EV hub

EP Manufacturing (EPMB) will be setting up an automotive manufacturing facility in Melaka for energy-efficient vehicles (EEV) and electric vehicles (EV) as it looks to contribute significantly to the global shift towards sustainability.

The establishment of the new facility will unfold in several phases at the HICOM Pegoh Industrial Park, marked by an investment of over RM100 million, according to a statement by the Malaysian Investment Development Authority (MIDA. 

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The project is set to create around 1,000 new job opportunities in the state of Melaka, bolstering the state’s growing significance within the regional and global EV industry. Upon completion, the first phase of this new facility will have the capacity to produce up to 30,000 vehicles a year, it said. 

"Such collaboration with BAIC is a testament of their confidence in Malaysia’s attractiveness as an investment destination and underscores the nation’s cutting-edge automotive manufacturing capabilities, with EPMB leading the way," said Wira Arham Abdul Rahman, CEO of MIDA at the ground-breaking ceremony. 

He added that this new manufacturing facility, dedicated to EEVs and EVs, aligns with the Low Carbon Mobility Blueprint (LCMB), National Automotive Policy (NAP) 2020 and Malaysia’s New Industrial Master Plan 2030 (NIMP 2030) aspirations.

"These policies are rooted in harnessing opportunities in ESG sensitive markets and swiftly adopting technology to enhance the technological ecosystem of our manufacturing sector and Malaysia’s commitment towards sustainable transportation,” he said. 

"The establishment of an EV manufacturing facility is a pivotal step in realizing our comprehensive vision of developing a 360° supply chain for Malaysia’s EV market," added Ahmad Razlan Mohamed, group chief executive officer of EP Manufacturing.

"Collaborating closely with our strategic partner, BAIC, we are poised to construct a cutting-edge EV manufacturing facility in Melaka, heralding the commencement of the next chapter in our growth trajectory," he said.

EPMB signed a Memorandum of Understanding (MoU) with BAIC International in August this year, paving the way for the local production of BAIC’s BJ40P and X55II sport utility vehicles, right-hand drive internal combustion engine vehicles, and EVs.

EPMB also expected to assemble vehicles for Great Wall Motor Sales Malaysia, a subsidiary of Great Wall Motor at this plant, based on the MoU which was signed by both parties on October 18, 2023.

EPMB also received approval for a manufacturing license from Malaysia’s Ministry of Investment, Trade, and Industry (MITI) on July 11 this year, allowing the manufacture and assembly of four-wheel EEVs, EVs, and electric commercial vehicles.

This comes shortly after Malaysia successfully secured RM26.2 billion in approved investments for the EV sector through 59 projects between 2018 to 1H2023.

The investment saw Elon Musk's electric vehicle company, Tesla, opening shop in Malaysia earlier this year. Through the collaboration with Tesla, Malaysia hopes to increase its potential and attract more investment commitments in the automotive sector and other sectors in the nation.

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