Another player has announced plans to build cars in Malaysia, with SAIC Motor Malaysia set to begin CKD local assembly of MG vehicles in the first quarter of 2026. The company signed a vehicle production agreement with EP Manufacturing (EPMB), the latter set to assemble both combustion-engined and battery electric vehicles at its plant in Pegoh, Melaka.
The company says the move will result in more affordable vehicles, increased localisation and shorter wait times for customers, adding that the its production line will be able to scale up or down according to market demand. It confirmed that the first model will be an EV, likely the MG S5 SUV that was present at the signing ceremony in Cyberjaya today.
Local assembly of the S5 will help it stave off price increases as a result of the expiration of import and excise duty exemptions for CBU fully-imported EVs at the end of this year. As a refresher, the car is currently priced at RM116,548 for the base Com with a 49 kWh battery, RM126,548 for the Com Long Range with a larger 62 kWh pack and RM136,548 for the range-topping Lux Long Range.
“Our assembly line will fully meet customer demand, ensuring a smoother and faster ownership experience,” said SAIC Motor Malaysia managing director Emory Qi. “Most importantly, quality is non-negotiable. Every locally assembled vehicle will undergo stringent global-level inspections through SAIC’s Quality Sustenance Programme.”
Executive chairman of EPMB, Hamidon Abdullah, added: “We are pleased to partner with SAIC Motor – our second state-owned OEM partner – to assemble the MG models in Malaysia. One will be the first electric vehicle locally assembled at our Melaka plant. Through collaboration with local suppliers, we will accelerate localization, including battery pack assembly for MG vehicles, enhancing our value proposition and better serving the Malaysian market.”
In other news, SAIC Motor Malaysia announced that it has expanded its MG dealer network to 26 outlets, including three showrooms in Sarawak alone and 18 service centres.
GALLERY: MG S5 Lux Long Range in Malaysia
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Source: MG to begin CKD local assembly in Melaka through EPMB – ICE and EV, production to start in Q1 2026
