Audi Q7 now locally assembled in Malaysia – First CKD model in Southeast Asia

KUALA LUMPUR:  Audi has officially started assembling its flagship SUV, the Q7, right here in Malaysia—marking the first time this model is being built locally not just in Malaysia, but across the entire Southeast Asian region.

This move represents a significant milestone for the brand, as the seven-seater Mild Hybrid Electric Vehicle (MHEV) becomes the first Audi to roll out from the Volkswagen Group Malaysia (VGM) assembly plant in Pekan.

The plant, which also handles production of Volkswagen models for the Malaysian market in partnership with DRB-Hicom, is now Audi’s only production hub in Southeast Asia.

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Speaking at the production kickoff, Dr Susanne Lehmann, Managing Director of Volkswagen Group Malaysia, said, “This manufacturing plant and its transformation with a modernized and updated product portfolio is really a centre of excellence. Customers will continue to experience the same Audi quality, performance and luxury – now made in Malaysia.”

She added that the start of production is about more than just a car. “Today marks more than just the launch of a car. It is a symbol of vision, partnership, innovation and progress.”

At the launching ceremony, when Dr Susanne was speaking, a slideshow presentation revealed Audi’s forward-looking strategy for the Pekan plant.

The company has plans to begin local assembly of battery electric vehicles (BEVs) at the same facility, aimed not only at serving the Malaysian market but also exporting to countries across the region.

Notably, the same slide also hinted that part of this export portfolio would include the Audi Q7 and Volkswagen Touareg.

According to VGM, the Pekan plant has an annual production capacity of up to 5,000 units. For the newly introduced Audi Q7, current output stands at around three vehicles per day. However, this rate isn’t fixed—production can be scaled up based on market demand.

An initial investment of over RM12 million has gone into setting up the necessary infrastructure and processes to support this shift—an effort that also ties into Malaysia’s ambitions to become a high-value, high-tech manufacturing hub under its National Automotive Policy.

The local production of the Q7 S line is also a strategic response to the increasing appetite for luxury vehicles in the country, as more Malaysians opt for premium SUVs amidst rising incomes and urban living trends.

“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, the official distributor of Audi vehicles here.

He also pointed out that now is the right time to bring the Q7 into the local lineup. “With growing demand for D-segment SUVs, we believe that this is the right time to add the Q7 to our range of Audi models to serve customers here and in the region. The signature Q7 will lead the way for more line-ups in the premium luxury segment.”

Bookings for the Audi Q7 S line are now open, with estimated pricing starting from RM469,000 and going up to RM489,000. The official launch is expected to take place next month. 

Bostandzhiev said that if the Q7 was not locally assembled, the price of the luxury SUV could cost as much as RM800k.

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CKD Audi Q7 S line (MHEV) Specifications: