Volkswagen prepares to produce EVs in Malaysia

Volkswagen Group Malaysia (VGM) is making preparations for the production of electric vehicles in Malaysia. These preparations include creating an ecosystem with local partners and within the Volkswagen Production Network. The company has plans to also export some of its local production from its facility in Pekan, Pahang, to other ASEAN countries in 2026.

The model or models to be assembled locally have not been revealed. At the VW Fest in 2022, Volkswagen Passenger Cars Malaysia displayed an ID.4 fully electric SUV. Although the company said it was studying the marketing possibility for the model, nothing happened after that.

The EV models to be produced would be from the automaker’s ID. range of fully electric vehicles. Launched in 2019, the range has broadened over the past 6 years so there are more models to choose from, with the EV technologies also have advanced further.

By producing in Malaysia, VGM will be able to continue to enjoy the duty-exemption for EVs until 2027. The current duty-exemption which applies to all fully electric vehicles expires at the end of 2025 and will only be applicable to models which are produced in Malaysia for a further 2 years.