Audi announces production of its second-generation Q7 SUV has begun at the DRB-Hicom manufacturing plant in Malaysia

Audi has begun production of its Q7 SUV at the DRB-Hitcom plant in Pekan, Malaysia, marking its first local assembly project in South-East Asia and its return to vehicle manufacturing in Malaysia since the 1990s.  

The plant, which already produces Volkswagen Group models including the Golf, Arteon, Tiguan Allspace and Touareg, has started Q7 production at a rate of three units per day. Audi expects capacity could rise to 5,000 units annually depending on demand. The Q7 is set to officially launch in May.  

“This manufacturing plant and its transformation with a modernised and updated product portfolio is really a centre of excellence,” commented Dr Susanne Lehmann, managing director of Volkswagen Group Malaysia. “Customers will continue to experience the same Audi quality, performance and luxury – now made in Malaysia.”  

The Q7 is a mild hybrid electric vehicle (MHEV), demonstrating the facility’s ability to handle electrified vehicle technologies such as battery systems and hybrid integration.  

Localisation strategy reinforces supply chain resilience 

Speaking about the Q7 localisation initiative, Dr Lehmann described the project as “a symbol of vision, partnership, innovation and progress”. 

Audi’s move is part of a wider localisation strategy intended to reduce supply chain complexity and increase resilience. Dieter Braun, Audi’s head of supply chain, outlined the company’s localisation goals in an interview with Automotive Logistics earlier this year, emphasising the benefits of reduced emissions, lower logistical risks and faster response to regional demand. 

The launch of the Q7 strengthens Audi’s investment in the ASEAN region, reinforcing its strategy of regional value creation and supply chain adaptation. This is a theme at the forefront of the Automotive Logistics & Supply Chain ASEAN conference, where Dr Lehmann will be a key speaker.