Volkswagen Group began assembling the upmarket Audi Q7 seven-seater mild-hybrid SUV in Malaysia at the end of April, as the German automaker looks to strengthen its currently very limited presence in the South-east Asia region. The model is now being built at a facility in city of Pekan, in Malaysia’s north-eastern Pahang state, owned by Malaysian domestic vehicle manufacturer DRB-Hicom Bhd.
DRB-Hicom’s facility already produces the Volkswagen Golf and Tiguan models in very limited volumes, under a contract assembly agreement. According to the Malaysian Automotive Association, the Volkswagen brand sold just 372 vehicles in the country in the first quarter of 2025, including imported models, while Audi sold none.
The Q7 is only Audi model to be produced in South-east Asia, although other models are expected to follow. It is powered by a 3.0L turbocharged V6 engine, delivering 340 hp and 500 Nm of torque. Retail prices range between RM469,000 and RM489,000 (US$109,600-US$114,250), with local assembly helping to reduce import tariffs.
DRB-Hicom is reported to have invested MYR12m (US$2.8m) to tool the plant for the production of the Audi model, and has set an annual production target of 5,000 units – including exports to other markets in the region.
