Audi Q7 to be locally assembled in Malaysia – A first for Audi in southeast asia
PHS Automotive Malaysia (PHSAM) and Volkswagen Passenger Cars Malaysia (VPCM) Managing Director Denyu Bosthandziev announced today that the Audi Q7 will soon be locally assembled (CKD) in Malaysia. This marks a major milestone for the brand, as it will be not only the first CKD Audi in Malaysia but also the first in Southeast Asia.
During a media luncheon, Bosthandziev confirmed that production will take place at the Pekan, Pahang plant, with a dedicated new production line set up for the large SUV. The official launch of the locally assembled Q7 in Malaysia is scheduled for May 2025
While Audi has long been known for its fully imported (CBU) models in Malaysia, the decision to introduce CKD production signals a strategic shift aimed at making the brand more competitive. Bosthandziev had previously hinted at these plans in January 2024, stating,
“We do have plans to move towards CKD. In the CKD market, we can be more competitive in pricing. Compared to CBU, it helps us reach out to our customers… in terms of pricing and needs, we are able to cut a good deal for our customers.”
The upcoming CKD Audi Q7 will be based on the latest facelifted second-generation model, which debuted globally last year. This refreshed version retains its reputation as a premium seven-seater SUV, while incorporating modern styling and cutting-edge technology.
Bosthandziev confirmed that Malaysia will only receive the 3.0L Turbo V6 Petrol engine, meaning the diesel variants available in other markets will not be offered.
Powertrain & Performance
- 3.0L Turbo V6 Petrol
- 340 PS / 500 Nm
- Eight-speed automatic transmission
- Quattro all-wheel-drive system
Additionally, the CKD Q7 will come equipped with Dynamic All-Wheel Steering, a system that enhances agility at low speeds while improving stability at high speeds, making the large SUV easier to maneuver in tight spaces and more composed on highways.
As standard, the Q7 also features a 48-volt mild-hybrid system, which includes a lithium-ion battery and a belt-alternator starter. This system allows for engine-off coasting for up to 40 seconds at speeds between 55 and 160 km/h, contributing to better fuel efficiency.
In Europe, the latest Q7 starts at €82,500 (RM384k) for the petrol version. The last Q7 officially sold in Malaysia was the pre-facelift second-gen model, which carried a hefty RM600k price tag as a fully imported unit.
With local assembly, the CKD Q7’s pricing is expected to be significantly more competitive. This move could position the Q7 closer to rivals like the BMW X5 and Mercedes-Benz GLE, making it a more attractive option for premium SUV buyers.
The introduction of the first CKD Audi in Malaysia marks a turning point for the brand. Not only will local assembly lower pricing, but it also highlights Audi’s long-term commitment to the Malaysian market.
With a May 2025 launch on the horizon, the big question remains—how much will the CKD Audi Q7 cost? Would you consider it over its German rivals now that it’s locally assembled?
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