Xpeng has confirmed that it is conducting a feasibility study to establish a vehicle assembly plant in Thailand, as part of its broader regional expansion strategy.

The proposed facility is intended to support local production and supply vehicles to the Thai market, where demand for battery electric vehicles (BEVs) has been increasing.

Chinese BEV manufacturers, including Xpeng, are also anticipating that rising oil prices linked to the conflict in Iran could accelerate the transition from internal combustion engine (ICE) vehicles to electric alternatives across the region.

Xpeng entered the Thai market approximately one year ago, initially offering completely built-up (CBU) imports from its primary manufacturing hub in Guangzhou, China.

Apiwan Singthaweesak, Chief Executive Officer of Xpeng Thailand, stated that "Xpeng is assessing and discussing investment opportunities in Thailand, including talks with a local company," adding that the country presents favourable BEV sales prospects due to supportive policy measures.

A final decision regarding the potential investment in a local assembly plant is expected to be made within the next year.