BMW Malaysia is set to assemble vehicles for export to Vietnam and the Philippines, beginning in 2018. Production will consist of core models in the automaker’s range, namely the 3 Series, 5 Series and 7 Series, in left-hand drive specification for the two markets.
Of interest is the news of the 7 Series assembly. The G11 is currently sold here in its CBU form, so given that Malaysia is going to build a LHD for those markets, there’s every likelihood the car will eventually go the CKD route here.
No specifics were detailed aside from that brief mention of export, which was made in passing during the company’s announcement of the customised EEV status incentives for the BMW 3 Series Gran Turismo, X3 and 5 Series yesterday. The event also highlighted the upcoming CKD programme for the BMW X1 and X4, which is set to begin sometime in the middle of the year.
Production volume isn’t expected to be staggering, but it is a feather in the cap for BMW Malaysia and its assembly facility in Kulim, Kedah. Group MD and CEO Han Sang Yun said that the company was pleased to be able to raise its competency to assemble and export to emerging markets in the region as well as increase its scope as a strategic hub in the Asean region.
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glad they’re choosing Malaysia as the production place for these cars to be exported.
Should also export recon Alphard and Velfire too
It is a pity BMW gets EEV status for all their cars but Mercedes Benz only get for E300 Bluetec Hybrid and S400 Hybrid.
Do you know why this is so? Very simple. One is a crony GLC owned by a big crony GLC Sime Darby. And the other, in non crony GLC.
This alone shows, Malaysia practices a crony system of selling cars. We all know Mercedes engines are so clean and more efficient than BMW.
Syukurlah Malaysia masih aman dan damai
I’m pretty sure the “good fortune” of BMW getting EEV status for their cars is a back-handed reward for selecting Malaysia as an assembly site for some ASEAN exports, and not because they are extraordinarily fuel efficient vehicles. I’m all for it if such “good fortune” is also extended to manufacturers of more affordable cars that also choose to assemble here for export.
Betul, betul… it might mean nothing to 99% of Malaysians, but this is exactly what 99% of us need (more foreign investment). Singapore’s success story is almost entirely based on how successful they were at attracting foreign investment. They were poorer than Malaysia and Brunei in the 1960s, but look at them now…
Also, it is worth noting that Penang state has been the most successful in attracting foreign investment, specifically in their Electronics manufacturing industry. Since the 1990s, every PlayStation has had a microprocessor that was made in Penang. Even now, both the Xbox One and PS4 have ‘Made in Malaysia’ (specifically Penang) written on their main AMD CPU. The powerful Intel i7 CPU is also made right here in our own backyard. Google it… you’ll be surprised.
Similarly, I don’t see why we can’t do the same for our auto industry. Let us take a lesson from Singapore’s and Penang’s success story.
Well, Penang and Singapore does not have something called NAP. Which has single handedly destroyed the automotive industry in Malaysia.
No manufacturer would want to set up shop here to export when we place such high and unscrupulous duties, fearing retaliatory duties in return.
Besides, FDI needs to be taken a step further.
I live close to an IT component Plant and I see hordes of foreign workers at shift change. Whats the point of FDI when production from those FDI is creating jobs for foreigners instead of local people?
Still waiting for the ability to customize our rides like how our European buddies have but I think that won’t be happening until pigs start falling from the sky. As for the EEV discount, hope to see them apply it to the X1/5/6 as well as the 2er, 4er and 7er to remain competitive.
You cannot expect to happen here bro coz volume is not justify it. European or US able to customize because the volume over there is huge. As an example: 1000 order Harmon Kardon mean on a particular week all these models will run through production line with HK sound system installed. If over here, only 10 to 20 ppl only order, assembly line won’t purposely change the line just to install for these 10 to 20 customer. Which is why we able to see CBU models being offer more “goodies” like: HK sound system, Lane Departure Warning, Active Blind Spot Assist, BirdView Camera, etc…… because these models brought from other countries.
Simple, just make them standard on the higher end of a range
Apparently he doesn’t know much about automotive business marketing and strategic analysis
Already a good step to extend warranty to 5years now BMWM need to improve the CKD quality first before exporting.
Why only Vietnam and the Philippines,
how about Thailand and Singapore??
Inferior BMWs maybe??
Thailand & Singapore left hand drive market?
Now this is something good for the country for sure …
Finally can special order to have left hand drive BMW in 2 years time. Right hand drive BMWs have inferior driving position due to offset pedals.
Thanks to Proton, Perodua and Dr. M, the father of thailand and indonesian automotive industries. Because of Proton, Perodua and Dr. M, BMW choose those 2 countries for their assemblied manufacturing.
Excellent news! My dua tangan thumbs up for this wunderbar development ! This makes BMW Malaysia one of only two companies here that plan to export to the Philippines (Bermaz Mazda will also export the CX-3 to PH). Good to see Inokom exporting their produce to our ASEAN neighbours. It will help even out our automobile export-import deficiency and increase Inokom’s economies of scale. Both Philippines and Vietnam win too, they will get more affordable BMWs. The Inokom-built Hyundai Elantra has also sold decently in Thailand, their Thai exports definitely helped offset their falling local sales. The Inokom-built CX-5 has sold well in Thailand too. Having said all that, my biggest concern is still the quality of assembly; I hope Inokom will place utmost emphasis on quality, otherwise, they’ll become a joke like Naza today.
The future of our CKD assembly industry rests in the hands of premium brands like BMW (and Mercedes-Benz). In the next 10 or 20 years, it is highly likely that CKD assembly of affordable volume sellers (Honda, Toyota, Nissan etc.) will become unjustified due to rising costs and reduced protective measures. Most volume sellers (except Perodua and Proton) will discontinue local production and just sell us CBU Indonesian models eventually. UMW Toyota already does this today.
The problem with volume sellers / budget cars is that economies of scale is of absolute importance. Without it, fair profit margins will be difficult to maintain in the long run. In the future, budget cars will continue to incorporate more and more advanced tech and safety modules, but customers are still going to demand low prices. This is a huge problem for the volume sellers, even today. Which is why many have diversified into premium segments to offset losses in their budget segments. Almost every major Japanese badge and now Hyundai too has a ‘luxury’ division.
Premium or luxury brands tend to have far bigger profit margins because the premium segment is less competitive. Each premium brand has their own distinct identity, people don’t really buy on spec, they buy on badge, heritage and simply just to be part of ‘the club’. But to be part of the exclusive club, car manufacturers like Toyota and Hyundai had to go through a lot to prove their worth. In effect, this weeds out the worthy from the weak.
It’s not just a matter of pride or namesake, but luxury cars are the future. It will come to a point (maybe in the next 50+ years) where only the rich can afford cars, both new, classic and self-driving, and there will be no place for cars like the Corolla or Elantra. Public transportation will advance massively, it will become cheaper and more convenient than ever. Most of us in the developed and newly industrialised countries won’t need cars, but cheap cars will probably stay popular in the ultra poor countries which don’t have good infrastructure.
Anyway, I wish BMW Malaysia and Inokom all the best, and hopefully with their lowered prices and increased CKD operations, they will close the gap on MBM. Now… that only leaves Audi… oh dear. haha Forget Audi/ Euromobil, Volvo Car Malaysia is next in line… their sales will improve with the XC90 CKD, and the upcoming S90 will seal the deal.
Left hand driven cars being assembled here? Interesting.
The reason for not exporting to Thailand is cos BMW group manufacturing Thailand Rayong plant had been around since year 2000. Thailand had been a BMW manufacturing plant for 16 years to date