Porsche AG has agreed to vehicle assembly in Malaysia, the first time its vehicles will be produced outside Europe, according to the local distributor.

The sports car maker has signed an agreement with Malaysian distributor and retailer Sime Darby to assemble its cars for local sale from 2022.

The local conglomerate, which operates in the automotive, industrial, healthcare, logistics and insurance sectors, currently distributes and retails premium automotive brands like BMW, Jaguar, Land Rover and Porsche and mass-market brands such as Ford, Mazda, Mini and Hyundai.

The company has two plants in Malaysia.

The Selangor factory assembles BMW and Land Rover vehicles while the former Inokom plant in Kedah builds Hyundai, Mini and Mazda.

Combined output last year was 17,141 units.

Sime Darby CEO Dato’ Jeffri Salim Davidson said in a statement: “This partnership with Porsche marks a coming of age of our relationship with the brand. To be entrusted to assemble cars for one of the world’s most admired sports car brands speaks volumes of the highly qualified and competent Malaysian talent we have at Sime Darby and our ability to provide meaningful value to our partners.”