Porsche Expands Capacity In Asia Due To Growing Demand; Assembly In Malaysia To Start In 2022
Porsche is catering to the growing demand in Asia by expanding its engineering and assembly capacity in the region. This is nothing new to the German sports car maker as it has had a long tradition of using foreign development sites for car development work.
Beginning in 2022, its new permanent R&D satellite in China will come online, allowing Porsche a sustained focus on its largest single market. Beyond China, it is also strengthening its presence in the emerging markets of Southeast Asia. Beyond projects, such as the implementation of SEA’s first cross-border high performance charging network (in cooperation with Shell), Porsche will also set up a small-scale local assembly in Malaysia to join the company’s network of global production sites. The vehicles will specifically match local requirements and will be available exclusively for Malaysia only.
“We’re driven by curiosity, by perpetually learning and fine tuning our cars,” said Oliver Blume, Chairman of the Executive Board at Porsche. “Having a permanent home for this work in China will bring obvious benefits, particularly when it comes to reflecting and predicting our customer’s needs in China, a nation that has truly welcomed Porsche and has taken our cars to heart to the extent that it’s been our biggest sales market for six consecutive years.”
The new R&D satellite is located in Shanghai and is supposed to increase the understanding of the Chinese customers and their requirements, and to improve the local product development. It comes as an addition to Porsche Digital China founded as independent company early this year and Porsche Engineering China with its presence in the market for more than 20 years already. Blume added, “The Chinese automotive market is very dynamic and customer preferences are highly specific. We want to meet these demands the best way possible.”
For the rest of the world, Porsche has a dedicated and ever-growing network of permanent research and development centres in various locations. These centres perform important engineering and design work, with the lessons learned finding their way into the finished cars. The network of permanent research, development and testing locations operated by Porsche spans several continents, all directly linked to the company’s engineering home in Weissach, Germany. Locations range from the frozen lakes of Arjeplog in northern Sweden, where the majority of extreme cold weather testing is conducted, to the unique climate and roads around Johannesburg, South Africa, to the dry heat of California, USA. This work affects not just dynamics and vehicle quality, but also comfort and convenience features and the technology fitted to current and future Porsche sports cars.
Another example of long-standing global investments already established is Porsche Digital. Formed as a subsidiary of Porsche in 2016, it focuses on research and development of new customer-focused digital services. It is headquartered in Germany and has key offices in USA, Spain, China, Israel and Croatia.
“We’re proud to be a vibrant, global business and to be investing in localised programs to ensure our cars and services do reflect the specific needs of our markets outside of Europe. To do this best requires a permanent presence,” said Michael Steiner, Member of the Executive Board, Research and Development at Porsche. “The addition of a Chinese R&D satellite location, joining the existing research and development operations in Europe, North America and elsewhere, underlines our commitment to ensuring our cars remain relevant and attuned to our markets.”
Furthermore, Southeast Asia represents a very dynamic market environment for Porsche, with significant growth and innovation potential. Porsche is expanding its footprint in the ten-member ASEAN region (Association of Southeast Asian Nations) with the establishment of a local assembly programme together with its long-standing partner, Sime Darby Berhad. Located in Malaysia, the site will be responsible for the final assembly of specific models for the local market from 2022 onwards. This facility will operate alongside Porsche’s established production network in Europe.
“We’re fortunate that, due to careful planning, our existing factories are more than up to the task of meeting current and future global demand for our cars. However, the new assembly site in Malaysia meets specific market needs and, although a standalone project and modest in size and capacity, it signals our willingness to learn and adapt to specific local market conditions,” said Albrecht Reimold, Member of the Executive Board for Production and Logistics at Porsche.
Porsche has enjoyed a close relationship with Sime Darby Berhad as the exclusive importer and distributor for the brand’s sports cars over the last 10 years. This partnership, coupled with a growing and dedicated Porsche fanbase in Malaysia, has delivered impressive results even in challenging conditions, as reflected in a 9% increase in deliveries in 2020. As a founding state of the ASEAN bloc, Malaysia offers significant business opportunities and a well-established automotive landscape.
“Malaysia and the whole ASEAN is a region of great potential and we look forward to the first locally assembled models reaching our Malaysian customers next year. As Porsche is moving into a new era of mobility, Malaysia and the ASEAN region are gaining an increasing importance. This step now is part of a long-standing initiative to keep pace with rapidly evolving customer and market demands,” commented Detlev von Platen, Member of the Executive Board for Sales and Marketing at Porsche.
