Stellantis Launches Local Assembly of Leapmotor in Malaysia to Target ASEAN EV Market

Stellantis Malaysia has commenced local assembly of Leapmotor, a Chinese electric vehicle brand, at its Gurun plant in Kedah. Production of the first model, the C10 SUV, has already begun, with the B10 model scheduled to enter production by the end of 2026. The project entails a total investment of €2.23 million, supplemented by an additional €3.1 million allocated for upgrading production lines and infrastructure. Currently, assembled vehicles are primarily destined for the Malaysian domestic market, while exports to other ASEAN countries remain under evaluation. Technicians at the Gurun facility have completed specialized training for high-voltage EV systems up to 800V. The assembly process adheres to globally harmonized assembly and quality standards jointly established by Stellantis and Leapmotor, which have already received approval from both Malaysian and international regulatory authorities. Stellantis views this collaboration as an initial, low-risk pilot to test a replicable business model in the ASEAN market, characterized by limited investment and focused on validation. Through localized assembly, Stellantis aims to circumvent import tariffs, meet local content requirements, and maintain cost competitiveness, while simultaneously offering Leapmotor a manufacturing and distribution platform to access markets otherwise difficult to penetrate. The initiative also seeks to enhance Malaysia’s local manufacturing capabilities and accelerate the region’s transition toward electrification. Whether Malaysia will evolve into a regional export hub will depend on the outcome of future commercial and regulatory negotiations.