Porsche is setting up an assembly plant in Malaysia as the automaker looks to make the nation its Southeast Asia hub, a Malaysian weekly newspaper reported, citing people familiar with the matter it did not identify.
Porsche will partner with Inokom, a unit of the Malaysian company Sime Darby, in the venture, which will be located in the northern state of Kedah, according to the Edge newspaper.
The move by Porsche will be a much-needed boost to Malaysia, which has lagged behind Indonesia and Thailand in securing big investments by global automakers, the report said.
Christian Weiss, Porsche’s deputy director of corporate communications, said Southeast Asia has great potential and the company is continuously examining options for further growth in this market, the Edge reported.
Other premium brands have assembly factiliies in Malaysia. Mercedes assembles kits at a factory in Pekan, on the west coast, and BMW, in partnership with Sime Darby, has both an engine assembly plant and a vehicle assembly operation. Volvo assembles a range of vehicles in the country.
Vehicles assembled in the country are subject to lower import duties compared with those imported as complete cars.