KUALA LUMPUR (Jan 14): Volkswagen Group has set up a new regional parts distribution centre in the Port of Tanjung Pelepas, Johor, which will serve as a genuine parts supply chain for 21 markets in the Asia-Pacific region.

In a joint statement with the Malaysian Investment Development Authority (MIDA), the group said the 50,000 sq m facility would have a higher storage capacity than its predecessor, extending the range and depth for better parts availability.

“Volkswagen Group follows the increasing trend of the establishment of global and regional distribution hubs in Malaysia by companies in industries such as automotive, life sciences and medical devices, electrical and electronics (E&E), and machinery and equipment.

"These companies seek to tap on Malaysia’s strategic location as well as our efficient and reliable infrastructure such as ports, airports and financial institutions, allowing them to improve operational efficiency and optimise product and service quality and speed for their customers," said International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

"Robust connectivity is paramount in enabling their investment and human capital to flow more freely across borders,” the senior minister added.

Meanwhile, Volkswagen head of group sales Dr Christian Dahlheim said the Asia-Pacific region offers a lot of growth potential for the group, especially when it comes to e-mobility.

He said the group's electric product range consists of very attractive models like the Volkswagen ID.3 and ID.4 as well as the Audi e-tron which is quickly growing.

"Apart from the vehicles, a strong aftersales performance is key for customer satisfaction. Malaysia offers a central and well-connected location which perfectly suits our plans to expand our foothold in the region," said Dahlheim.

Roman Havlasek, the head of group aftersales, said MIDA had greatly supported the group's relocation to Malaysia.

"We were pleased by the ease of implementing our project here and the assistance given by the team at MIDA," he said.

The group's project was facilitated by the global trading centre (GTC) scheme, which was announced in Budget 2021, to encourage companies — both multinational corporations (MNCs) and local companies — to establish their global and regional distribution hubs.

The scheme provides a tax incentive and facilitation to ease import and export activities, and aims to support companies in key manufacturing and services sectors venturing into procurement, distribution and trade activities to further strengthen their global supply chain.