Audi has officially resumed vehicle production in Malaysia, beginning with the local assembly of its flagship Q7 SUV at the DRB-HICOM plant in Pekan, Pahang state, marking its first manufacturing initiative in Southeast Asia since the 1990s. The plant, which already produces several Volkswagen Group models like the Golf, Arteon, Tiguan Allspace, and Touareg, now assembles three Q7 units daily, with future potential to scale up to 5,000 units annually based on demand.
Backed by an investment of over MYR 12 million (USD 2.6 million), the move reflects Audi’s commitment to regional expansion and plans to introduce additional locally assembled luxury models. The Q7 S Line Mild Hybrid Electric Vehicle (MHEV), a seven-seat SUV features a 3.0-litre turbocharged V6 engine delivering 340 hp and 500 Nm of torque. It is equipped with an eight-speed Tiptronic transmission and a 48-volt mild hybrid system that enables engine-off coasting for up to 40 seconds between 55 and 160 km/h. Capable of accelerating from 0 to 100 km/h in just 5.6 seconds and reaching a top speed of 250 km/h, the Q7 is priced competitively between USD 100,000 and USD 104,000. Its official launch in Malaysia is in May 2025, positioning Audi strongly against rivals like the BMW X5 and Mercedes-Benz GLE.
Audi’s localization strategy highlights the rising demand for luxury vehicles in Malaysia, driven by urbanization and increased consumer spending power. Local assembly enables quicker delivery and cost efficiency for Malaysian buyers while showcasing Audi’s capability in producing electrified models. The investment reinforces Audi’s presence in the ASEAN region, enabling more agile responses to market shifts, reducing logistical and environmental costs, and enhancing supply chain resilience and regional value creation.
(Sources: The Edge Malaysia; New Straits Times; Automotive Logistics)
