Volkswagen will assemble “Semi Knocked Down” (SKD) units of its Transporter and Multivan vans in Indonesia. Both based on the current T5 platform, the vans will be for the local market. Indonesia is ASEAN’s most populous country and people carriers are the most popular choice of vehicle there.

The T5 Transporters and Multivans will be built at Volkswagen’s Hanover plant in Germany before being transported to its SKD Center in Bissendorf/Wedemark nearby. Here, the vehicles will be partially disassembled and before making the long journey to Jakarta via Hamburg. At the destination, Volkswagen Commercial Vehicles’ partner Indomobil/Garuda Mataram Motor will pay duty on the SKD units before piecing back the vans.

“We are very pleased that this successful and trusted partner is now also assembling our models for this growth-oriented market. This ensures the product quality which Volkswagen customers are accustomed to, and which they expect from a premium product like the T5,” said Jens Ocksen, Member of the Management of Volkswagen Commercial Vehicles for Production.

A hassle yes, but the duties and taxes saved over bringing in a fully CBU car from Germany must be worthwhile. VW plans to assemble around 220 T5s this year, and the first vehicles will be delivered this month. Do you think a Hyundai Starex type of Volkswagen passenger van will work in Malaysia?