PETALING JAYA: An initial investment of €5 million (RM25 million) has set the stage for European carmaker Stellantis and joint venture partner Leapmotor of China to begin electric vehicle (EV) assembly in Malaysia.
Stellantis Asean managing director Isaac Yeo said this marks a significant milestone in the region’s push for electrification.
“The local production, which will take place at Stellantis’ existing manufacturing facility in Gurun, Kedah, represents Leapmotor’s first step into Malaysian localisation and strengthens Stellantis’ strategy to anchor its EV growth in the Asean region.
“The initiative, backed by an initial investment of RM25 million, will take place at Stellantis’ established manufacturing facility in Gurun, Kedah,” he said at a press conference on assembly of Leapmotor vehicles in Malaysia on Friday.
The strategic move not only signals Leapmotor’s entry into production in Malaysia, but also positions the country at the forefront of the electric mobility revolution in the Asean region, Yeo said.
“By leveraging Stellantis’ global manufacturing scale and Leapmotor’s innovative new energy vehicle (NEV) technologies, the two companies are jointly advancing a vision for accessible, high-quality EVs tailored for Southeast Asia.
“With demand for EVs rising rapidly across Asean, the local assembly project in Malaysia represents both a commercial opportunity and a statement of intent to lead in sustainable mobility,” he noted.
Stellantis India and Asia-Pacific chief operating officer Ashwani Muppasani said the milestone marks more than the start of local assembly – it marks the next chapter in Stellantis’ electrification journey across Asean.
“By combining Leapmotor’s EV innovation and success with Stellantis’ regional expertise and global scale, we are laying the foundation for an accessible, sustainable future of mobility right here in Malaysia and across Southeast Asia,” he remarked.
Ashwani said the Gurun plant, which has been a core manufacturing base for Stellantis in the region, was selected for its strategic location and well-established automotive infrastructure.
“The plant has undergone enhancements to accommodate EV production, starting with the Leapmotor C10 model. Local assembly of this model is expected to begin by the end of 2025, with plans for further expansion aligned with regional market demand,” he adde.
Ashwani highlighted the plant’s evolving role in the company’s regional strategy.
“The Gurun plant has become a cornerstone of Stellantis’ manufacturing presence in the region. We have proactively enhanced its capabilities to support EV assembly, and we are proud that Leapmotor will be the first locally assembled electric vehicle to emerge from this plant,” he said.
Beyond manufacturing, he added, the collaboration is expected to generate broader economic benefits including industrial growth, technology transfer, and enhanced bilateral cooperation between Malaysia and China.
“The project is also aligned with national and regional policies, particularly Malaysia’s National Automotive Policy 2030, which aims to strengthen the country’s position as a regional automotive hub with an emphasis on green mobility solutions,” Ashwani said.
Leapmotor founder, chairman and CEO Zhu Jiangming said the initiative supports Malaysia’s broader economic objectives during its 2025 Asean chairmanship, positioning the country as a regional leader in clean energy development and sustainable transport.
He described the project as a key milestone in the company’s global expansion.
“The localised assembly project in Malaysia will accelerate Leapmotor’s global strategic expansion. We look forward to working with Stellantis Group to bring new technology and vitality to the transformation of Malaysia’s automotive industry, and to set a benchmark and model for opening up the entire Southeast Asian market for Leapmotor.”
Zhu said Leapmotor, which made its Malaysian debut in October 2024 and subsequently launched in Thailand, is aiming to strengthen its presence across Asean markets.
