Breaking news! Porsche has officially announced that it will set up CKD operations in Malaysia, which will be the first outside of Germany. According to the carmaker, the move is aimed at strengthening its presence in emerging markets within Southeast Asia that has seen encouraging growth.

Local assembly will be done together with Porsche’s long-standing partner Sime Darby, who is the official distributor of Porsche vehicles in the country via Sime Darby Auto Performance (SDAP). Currently, Sime Darby Motors has the Inokom vehicle assembly plant in Kulim, Kedah, which also assembles BMW, Hyundai, Mazda and MINI cars, with an annual production capacity of 38,000 vehicles.

For now, there’s no mention of what Porsche models will be CKD, but it is said that “the vehicles will specifically match local requirements and will be available for Malaysia only,” with operations set to begin from 2022 onwards. A previous report tipped the Macan and Cayenne as leading candidates, which makes sense given the popularity of SUVs these days – the Cayenne is Porsche’s top-selling model on the regular.

“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,” said Albrecht Reimold, member of the executive board for production and logistics at Porsche. “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,” he added.

“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,” said Detlev von Platen, member of the executive board for sales and marketing at Porsche. “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,” he added.

Besides announcing CKD operations in Malaysia, Porsche also revealed that it will set up a new permanent research and development centre in China, its largest single market that it won’t set up an assembly plant in. The satellite facility will serve to increase the company’s understanding of its Chinese customers and their requirements, and to improve the local product development.

With Porsches set to be CKD in Malaysia, will we be seeing more affordable models coming our way soon? Let us know what you think below.