Pekan: Audi has started assembling its first SUV in Southeast Asia at its Pekan plant in Pahang, the group’s only Audi production facility in the region, a statement said. Audi is part of the Volkswagen Group.

According to BERNAMA News Agency, Volkswagen Group Malaysia’s (VGM) managing director Susanne Lehmann stated that Malaysia was identified as the regional production hub for Audi vehicles in ASEAN. “Customers will continue to experience the same Audi quality, performance and luxury, now made in Malaysia,” she said at the Audi Q7: Start of Production event held today.

The Audi Q7 SUV, a seven-seater priced between RM469,000 and RM489,000, is set to be introduced to the Malaysian market next month. The statement highlighted that the Pekan plant, which involves about RM12 million in initial investment, has an annual capacity of 5,000 units. Lehmann also mentioned that the company’s future export markets would include Indonesia, Thailand, and Vietnam.

Lehmann explained that the decision to start with the Q7, rather than a smaller or higher-volume model, was a strategic move to expand Audi’s product portfolio. “We want to move into electric vehicle (EV) production step-by-step. This is a logical first step for our operations here. We are not only looking at volume but building capabilities. We need to train our workforce, introduce new technologies, and prepare the foundation for EV production,” she added.

The company is currently in discussions with local government agencies to increase the use of Malaysian components and suppliers. “We aim to increase localisation and involve more local suppliers in our supply chain, which will help reduce material costs even further,” Lehmann said. She also noted that the plant is expected to create job opportunities, facilitate skill transfer, and develop a local supply chain.

On the topic of opening a body shop, Lehmann remarked that body and paint shops require significant investments and a minimum of 10,000 cars a year.