KUALA LUMPUR: Porsche AG has bolstered its partnership with Sime Darby Bhd with the expansion of the German marque's assembly facility in Malaysia, its first outside Europe.

The Inokom facility in Kulim, Kedah has been expanded to 11,000 square metres to facilitate the local production of a second Porsche Cayenne variant.

Sime Darby and Porsche on Wednesday rolled out the plug-in Cayenne S E-Hybrid Coupé, and disclosed that the new variant will be the first locally-assembled Porsche to be exported to the Thailand market.

"This signifies the immense growth and innovation potential of the region, underlining its importance for Porsche's global business," the companies said.

Thailand is one of Porsche's largest markets in the Asean region.

The facility at Inokom for Porsche was the first of its kind outside of Europe when it was opened in 2022.

It has since rolled out two generations and more than 2,000 units of Porsche's sports cars.

Industry observers said the expansion reinforced Porsche's footprint in Malaysia and that the government should double its efforts to attract more global players.

"This is an amazing move strategically for Porsche and for Sime Darby Motors which owns Inokom," a senior motoring analyst told Business Times. Inokom assembles passenger cars, multi-utility vehicles, multi-purpose vehicles and commercial vehicles.

"Whichever way the US elections go, very likely there will be a strong sense of deglobalisation happening. Hence reinforcing Porsche's footprint in Malaysia and expanding its facility is smart in every way possible," he added.

Another industry observer said: "This is Malaysia's chance to start getting other high end marquees to relocate to Malaysia. The current government needs to work harder to attract other auto players. It just makes more sense especially in the high end category."

The observer added that Asean as a block has enormous opportunity.

"Sime Darby, with their regional footprint and recent acquisition of UMW Holdings Bhd, clearly gives them a stronger pole position regionally with Porsche increasing their throughput here," the observer said.

Sime Darby and Porsche, in a joint statement, said the Kulim facility was designed and built to meet sustainability standards, featuring solar panels with smart monitoring systems installed on its roof to provide power for operations, thereby reducing electricity consumption.

"This is a significant milestone for us at Sime Darby together with our partner, Porsche, in unlocking new opportunities in the Asean region while affirming the capabilities of our highly skilled local talents," said Sime Darby chief executive officer Datuk Jeffri Salim Davidson.

"We remain steadfast in our commitment to delivering product consistency that meets the discerning demands of Porsche customers, expanding beyond the domestic market to our neighbouring country, Thailand," he said.

Albrecht Reimold, a member of the executive board for production at Porsche, said the group ventured into new territory by establishing a local assembly facility in Malaysia in 2022.

"Since then, we have achieved many significant milestones, for example, when more than 2,000 locally-assembled Cayennes found new homes with Malaysian families just two years after assembly commenced.

"Today, we prepare for the future by considerably enhancing our site in Kulim, making sure that this first regionally exported Cayenne fulfils our customers' demands and expectations," he added.

https://www.nst.com.my/business/corporate/2024/07/1081221/porsche-expands-malaysian-assembly-facility-sime-darby