MG ties up with EPMB to kick off CKD operations in Melaka of ICE and EV models starting in Q1 2026

Another automaker is set to deepen its presence in Malaysia’s automotive scene. The latest news of this comes from SAIC Motor Malaysia, the company behind the MG brand, which has confirmed plans to begin CKD local assembly of MG vehicles in the first quarter of 2026.

This follows the signing of a vehicle production agreement with EP Manufacturing Berhad (EPMB), which will handle the assembly of both combustion-engined and electric MG models at its Pegoh plant in Melaka.

For Malaysian buyers, the local assembly of MG vehicles will means lower vehicle prices, shorter delivery times, and higher localisation of parts and components, helping the brand better serve local demand. SAIC Motor Malaysia also highlighted that its production line will be scalable, allowing output to increase or decrease according to market conditions.

The first model to be locally assembled will be an electric vehicle, most likely the MG S5 SUV, which was displayed at the signing ceremony in Cyberjaya earlier today. The S5 is currently sold in Malaysia as a fully imported unit priced at RM116,548 for the base Com variant with a 49 kWh battery, RM126,548 for the Com Long Range with a 62 kWh pack, and RM136,548 for the range-topping Lux Long Range.

Once local production begins, the S5 is expected to maintain its competitive pricing even after CBU EV tax exemptions expire at the end of 2025. EPMB executive chairman En Hamidon Abdullah expressed optimism about the collaboration, stating, “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 localisation, including battery pack assembly for MG vehicles, enhancing our value proposition and better serving the Malaysian market.”

Meanwhile, SAIC Motor Malaysia managing director Emory Qi reassured that production quality will remain at global standards. “Our assembly line will fully meet customer demand, ensuring a smoother and faster ownership experience,” he said. “Most importantly, quality is non-negotiable. Every locally assembled vehicle will undergo stringent global-level inspections through SAIC’s Quality Sustenance Programme.”

In addition, SAIC Motor Malaysia announced that it has expanded its MG dealer network to 26 outlets nationwide, including three showrooms in Sarawak and 18 service centres.