VW Production Policy in ASEAN
- Volkswagen Group has started its ASEAN strategy by the planned setup of a self-owned manufacturing plant in ASEAN where the automaker lacks a mass-production plant. While VW is a latecomer in ASEAN where the automaker controls less than 1 percent of the market, it is indispensable for VW to capture a larger share if it wants to surpass Toyota Motor and become top automobile manufacturer of the world.
- VW has already tried to increase its presence several times in the past; however, it always failed to get on track. (as with Proton in 2004 In Malaysia). In 2011, VW announced a plan to establish a self-owned plant in Indonesia which is yet to be realized. Presently, VW is entrusting assembly to local companies in Malaysia and Indonesia with a small-scale volume of around 5,000 units; however, so far the automaker failed to launch full-scale operations in ASEAN.
- Since 2013, VW has again stepped up effort to commence large-scale production. In Malaysia, the Jetta went into production at the end of 2013, boosting VW's local model line up. In Indonesia, the automaker increased the existing plant's annual production capacity to 5,000 units in 2013 and a new plant is scheduled to start operation by 2017. The new facility's annual production capacity is intended to be 20,000-30,000 units in the initial phase; however, volume may be increased to 100,000 units in the medium to long term. In Thailand, VW applied for the Eco Car Phase 2 program. A plant with annual production capacity of over 100,000 units is scheduled to start operation by 2019.
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