Audi has started local production of its Q7 SUV at the DRB-Hicom plant in Pekan, Malaysia, marking the brand’s first fully localised assembly project in Southeast Asia. This move is aimed at strengthening the regional supply chain and increasing production resilience. Initially, the plant is producing three Q7 units per day, with plans to ramp up to 5,000 units annually, depending on demand.
This marks Audi’s return to vehicle manufacturing in Malaysia since the 1990s. The DRB-Hicom plant, which also produces models for Volkswagen Group, including the Golf, Arteon, Tiguan Allspace, and Touareg, is now adding the Q7 to its assembly line. The Q7 is expected to officially launch in May.
Dr. Susanne Lehmann, Managing Director of Volkswagen Group Malaysia, referred to the plant as a “centre of excellence” following its transformation and modernisation. “Customers will continue to experience the same Audi quality, performance, and luxury – now made in Malaysia,” she said.
The Q7, a mild hybrid electric vehicle (MHEV), highlights the plant’s ability to handle advanced technologies like battery systems and hybrid integration.
Audi’s localisation strategy is designed to reduce supply chain complexity and increase resilience. Dr. Lehmann called the project “a symbol of vision, partnership, innovation, and progress.” Dieter Braun, Audi’s Head of Supply Chain, explained that the initiative helps lower emissions, reduce logistical risks, and improve the company’s ability to respond to regional demand more quickly.
With the launch of the Q7, Audi continues to strengthen its commitment to the ASEAN region, aligning with its broader strategy to create regional value and adapt its supply chain. Dr. Lehmann will discuss these topics as a key speaker at the upcoming Automotive Logistics & Supply Chain ASEAN conference.
