Tengku Zafrul – Volkswagen To Make Malaysia Its ICE & EV Export Hub

The Minister of Investment, Trade and Industry (MITI) YB Senator Tengku Datuk Seri Utama Zafrul Abdul Aziz took to his social media earlier today to announce plans by Volkswagen Group Malaysia (VGM) to establish Malaysia as a key regional export hub for the Volkswagen brand.

This strategic move came to light following a series of discussions between MITI and officials from VGM, signalling a significant shift in Volkswagen's operational strategy in the region.

According to Zafrul, Volkswagen expressed its intention to expand its manufacturing operations within Malaysia to also include electric vehicles (EVs) in the near future. This development marks a significant shift in Volkswagen's presence in the Malaysian market, transitioning from merely importing vehicles to establishing substantial production presence here at the HICOM Plant in Pekan, Pahang.

Tengku Zafrul also highlighted a notable milestone where Malaysia was selected to be the first country outside of Europe to assemble the Touareg R-Line model that was launched locally in March this year.

He also went on to express strong optimism that by becoming an export hub for Volkswagen, Malaysia is expected to see a boost in its automotive sector, particularly in terms of technological advancement, job creation, and economic growth. This will not only enhance the local industry but also position Malaysia as a prominent player within the regional and global automotive landscapes.

Volkswagen has had its manufacturing presence in the country for quite some time now after having assembled Arteon R-Line, Golf GTI and Tiguan Allspace previously.

However, we at CariCarz.com feel this meet-up would in essence be with regards to plans to push for more electrified models being assembled here to take advantage of the Madani government's Net-Zero Emission drive, just as what Tesla did. 

While Tengku Zafrul pushes VGM to expand its CKD operations at the regional level, distributors PHSAM continue to make product planning decisions locally. VGM's increased CKD efforts may lead to the addition of new VW-branded EVs to PHSAM's local line-up, but this is still uncertain.