Malaysia a key strategic gateway into Asia Pacific for Volkswagen's aftersales logistics
At ALSC ASEAN 2026, Volkswagen Group's Dominik Birth-Ruszczynski shared his perspective on what makes Malaysia a key strategic gateway for regional growth, as well as how the group is navigating increased global disruption and the complexity of EV battery logistics.
Dominik Birth-Ruszczynski, director of aftersales for the Asia Pacific region at Volkswagen Group Regional After Sales in Singapore, joined Automotive Logistics on the Red Sofa at ALSC ASEAN.
In 2021, Volkswagen Group set up its regional parts distribution centre in the Port of Tanjung Pelepas in Johor, Malaysia. This 50,000 sq. m facility serves 20 markets in the Asia Pacific (APAC) region and sits within a free trade zone.
"We have chosen Malaysia because it is truly for us a strategic gateway into APAC," Birth-Ruszczynski said, adding that the group's strategic approach is to be close to customers and ensure that parts reach customers on time.
"We have a service promise for over 90%, and Malaysia offers the space and the infrastructure for us to operate close to our customers and position our stock strategically," he explained.
Birth-Ruszczynski said Malaysia also offers access to a strong network of logistics service providers, with major operators already established in the region. He described this as a significant advantage when selecting a third-party logistics (3PL) partner, particularly given the unpredictable nature of aftersales demand.
"For me, as a customer who's using 3PL services, it is a genuine advantage to choose a reliable partner," he said. He added that the ideal partner must be able to adapt quickly to changing requirements, find compromises and continually improve processes.
Volkswagen Group has worked with its 3PL partner in the region for more than five years. Birth-Ruszczynski described the relationship as a genuine partnership, helping the group navigate the operational difficulties and supply-chain challenges it faces across the APAC region.
Overcoming disruption
Birth-Ruszczynski noted that the automotive industry has been facing significant disruptions for several years now – from the Covid-19 pandemic to the Suez Canal crisis to today's tensions in the Middle East. He noted that these successive disruptions have driven up logistics costs, with the industry currently experiencing particularly high spikes in air freight rates.
But according to Birth-Ruszczynski, rerouting shipments is not always an option, particularly when disruptions affect major maritime chokepoints such as the Strait of Malacca.
Instead, Volkswagen is using inventory as a buffer against supply chain disruption, building up stocks to ensure parts remain available when transport routes are affected. Birth-Ruszczynski cautioned, however, that this approach requires careful planning, as holding additional inventory comes at a cost and parts can age while in storage.
The challenge, he explained, is to anticipate which parts customers will need and maintain the right stock levels to avoid vehicle downtime. This requires Volkswagen to identify and predict demand as accurately as possible, balancing the need for resilience against the costs of holding excess inventory.
The challenges of battery logistics
Birth-Ruszczynski also highlighted the growing complexity of battery logistics as battery electric vehicle (BEV) sales develop, particularly given the safety requirements associated with transporting and storing batteries. He said warehouses used for battery storage must be designed to account for the worst-case scenario of a fire, making early detection systems particularly important.
Moving batteries across APAC presents further challenges because of its geography and differing national regulations. Unlike Europe, where a more connected road network provides a relatively straightforward framework for moving goods, APAC's many islands mean batteries often need to cross multiple national borders.
Birth-Ruszczynski said transporting new batteries is relatively straightforward, but the process becomes considerably more complicated when batteries are returned or damaged. In these cases, air freight is not an option, meaning Volkswagen must rely on sea freight, which requires pre-approval from every country involved in the supply chain.
He said greater alignment between countries on how battery condition is assessed and accepted for cross-border transport would help simplify these processes, without compromising safety regulations.
Watch the full Red Sofa interview with Dominik Birth-Ruszczynski from ALSC ASEAN.
