Audi has taken a bold step forward in Southeast Asia by commencing local production of its flagship SUV, the Q7, marking a historic milestone not just for the brand, but for Malaysia’s automotive industry. This makes the Audi Q7 the first model from the German automaker to be assembled in the region, specifically at the Volkswagen Group Malaysia (VGM) facility in Pekan, Pahang.
This seven-seater Mild Hybrid Electric Vehicle (MHEV) now represents the cutting edge of Audi’s premium offerings, produced right in the heart of Malaysia. The Pekan plant—already a vital part of Volkswagen’s local operations in collaboration with DRB-Hicom—has now expanded its portfolio to include Audi vehicles, solidifying its role as the only Audi production hub in Southeast Asia. 
According to Dr Susanne Lehmann, Managing Director of Volkswagen Group Malaysia, the move is about more than just production. “This manufacturing plant and its transformation with a modernized and updated product portfolio is really a centre of excellence,” she said. “Customers will continue to experience the same Audi quality, performance and luxury – now made in Malaysia.” 
With an initial investment exceeding RM12 million, the facility is expected to roll out up to 5,000 units annually, laying the groundwork for future Audi models to be assembled locally. This investment supports Malaysia’s National Automotive Policy, which aims to position the country as a leader in high-tech, high-value manufacturing. 
The push for local assembly also reflects changing market dynamics. As Malaysia experiences rising incomes, rapid urbanization, and shifting preferences toward premium mobility solutions, demand for luxury vehicles—especially D-segment SUVs like the Q7—is surging. 
“By assembling some of our top-of-the-line vehicles here, we can offer customers more competitive pricing and shorter delivery times,” said Denyu Bostandzhiev, Managing Director of PHS Automotive Malaysia. He emphasized that the Q7 will spearhead Audi’s strategy to expand its luxury lineup in the region. 
Available for booking now and set to launch next month, the new Audi Q7 S line MHEV is priced between RM469,000 and RM489,000. As the first step in a broader localization strategy, this launch is not just a business move—it’s a statement of intent, vision, and long-term commitment to the region.
For more information or to book a test drive, visit www.audi.com.my or your nearest Audi Centre today. 
