DRB-Hicom to export Volkswagen Polo and Jetta - Indonesia first target country

DRB-HICOM, the leading Malaysian automobile manufacturing, distribution and assembly corporations plans the export of flagship Volkswagen Polo and Jetta into the Indonesian market in the recent future. In the words of Datuk Seri Mustapa Mohanmed, International Trade and Industry Minister, the first export unit would include 500 units which would be assembled locally at Pekan plant of DRB-Hicom.

A national news agency caught the quotes of Minister, “ Indonesia becomes the first country for exports as a result of the government facilities to DRB-Hicom for exports of cars. The main aim for exports is to fulfill Malaysian government's aim of undergoing more export of cars which are locally assembled and for this the corporation was allocated more than RM 1 billion for the successful functioning of the Pekan plant.”

Rumor mill exploded with Volkwagen Polo (Hatch and Sedan) and Jetta's exports plans by Volkswagen Malaysia since the fourth quarter last year. Both these drives, between them, comprise 40% of the ASEAN Volkswagen market segment – this is a big opportunity to increment the exemptions in import duties if the local assembled units are exported in other countries of the same region, under the terms of AFTA agreement (ASEAN Free Trade Area), said MD Armin Keller back in October 2014.

Currently, the initial focus would remain Malaysia like right hand drive markets like Thailand and Indonesia. But the MD does not disapprove of the option of producing left hand drives for markets like Philippines or Vietnam if the business expands rapidly. Currently, Pekan plant manufactures Polo Hatch, Polo Sedan, Passat and Jetta.

As a result of the AFTA agreement, many manufacturers like Proton, Perodua, Peugeot, Mazda, Hyundai, Volvo and Subaru have already started exporting locally assembled units.