Volkswagen Group commenced the assembly of the high-end Audi Q7 seven-seater mild-hybrid SUV in Malaysia in late April, marking a strategic move to strengthen its limited presence in the South-east Asia region. The production now takes place at a facility in Pekan, Malaysia, owned by domestic vehicle manufacturer DRB-Hicom Bhd.
DRB-Hicom’s plant already manufactures Volkswagen Golf and Tiguan models under a contract assembly agreement, albeit in small volumes. The Volkswagen brand sold 372 vehicles in Malaysia in the first quarter of 2025, while Audi had no sales presence in the country.
The Audi Q7 is the sole model currently being produced in South-east Asia, with plans for additional models in the future. It features a 3.0L turbocharged V6 engine, generating 340 hp and 500 Nm of torque. The retail prices range from RM469,000 to RM489,000 (US$109,600-US$114,250), with local assembly aiding in tariff reduction.
DRB-Hicom reportedly invested MYR12m (US$2.8m) to equip the plant for Audi production and aims to produce 5,000 units annually, including exports to other regional markets.
