Since the successful 2013 launch of the Audi A6 hybrid, with more than 2,500 units sold, the German marque has been in the doldrums here in Malaysia.
Between 2015 to 2018, Audi Malaysia had taken the fight to both Mercedes-Benz Malaysia and BMW Malaysia but their efforts only managed a small dent in the premium car segment.
BMW Malaysia and Mercedes-Benz Malaysia on the other hand, had invested years earlier in local assembly and established stronger dealer networks in Malaysia. Consequently, their year-on-year new car sales increased while Audi’s sales declined.
To solidify its position, BMW Malaysia spent over RM132 million on the new Sime Darby Auto Engineering Engine Assembly Facility in Kulim, Kedah in May 2018.
A year later, Mercedes-Benz Malaysia, began exporting their Malaysian-assembled C180 sedan to the Philippines.
These factors drew dividends for these two German automakers. In fact, BMW Malaysia managed to sell a whopping 11,016 new vehicles in 2020, despite the Covid-19 pandemic. Imagine that.
Audi’s fully-imported product range, from the nimble A3 sedan to the muscular Q8 SUV, is no match for the strong locally-assembled products of Mercedes and BMW.
Even so, the number of Audi vehicles on the road has increased due to used reconditioned Approved Permit holders who have been enjoying lower import tax payments. This allows them to pass on ‘some’ of the savings to customers who desire Audis.
While Audis continue to gain popularity among Malaysians, many are still happy to buy used reconditioned units and use private workshops for after-sales and maintenance needs.
In 2020, Audi as a whole in Malaysia sold just below 250 units. In contrast, new Audi car sales in Singapore sold 10 times the Malaysian number. This is a testament to its product lineup and appeal.
Industry experts believe that the used reconditioned market in Malaysia sells more than 1,000 units a year, a figure that can easily be matched should Audi kickstart local assembly here in Malaysia.
Its partner DRB-HICOM has vehicle assembly partnerships with Volkswagen, Mercedes-Benz, Mitsubishi and Isuzu to name a few in Pekan, Pahang.
Audi also has Euromobil dealerships with Rimau International and Goh Brothers to further grow the brand locally.
A deeper question is this — If Volkswagen assembles its Arteon, Passat and Tiguan models in Pekan, why can’t Audi assemble its Q3, Q5 SUV’s and the A4 and A6 luxury sedans in Pekan as well?
With news that Porsche AG might establish an assembly plant in Kulim, the brand’s first outside of Germany, Audi’s bosses in Ingolstadt, Germany should show more confidence in Malaysian vehicle assembly pedigree before it’s too late.
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