Volkswagen Group sets up regional Parts Distribution Centre in Tanjung Pelepas
14 Jan 2021
Volkswagen Group, one of the world’s leading automotive manufacturers based in Wolfsburg, Germany, has set up its new regional Parts Distribution Centre in Port of Tanjung Pelepas, Johor.
A joint statement by Volkswagen Group and Malaysian Investment Development Authority (MIDA) said the strategically located facility aims to provide a robust genuine parts supply chain to 21 markets in the Asia-Pacific region.
With this larger facility of 50,000 square metres, the new regional Parts Distribution Centre can now store more parts and thus extend the range and depth for better parts availability.
There are 65,000 genuine parts of the group’s brands of Volkswagen Passenger Cars, Audi, ŠKODA and Volkswagen commercial vehicles.
“Volkswagen Group follows the increasing trend of the establishment of global and regional distribution hubs in Malaysia by companies in industries such as automotive, life sciences and medical devices, electrical and electronics, and machinery and equipment.
“These companies seek to tap on Malaysia’s strategic location as well as our efficient and reliable infrastructure such as ports, airports and financial institutions, allowing them to improve operational efficiency and optimise product and service quality and speed for their customers,” said International Trade and Industry Minister and Senior Minister Datuk Seri Mohamed Azmin Ali.
Meanwhile, Volkswagen Group sales head Dr Christian Dahlheim said the Asia-Pacific region offers a lot of growth potential for the group, especially on e-mobility.
“Our electric product range already consists of very attractive models like the Volkswagen ID.3 and ID.4 as well as the Audi e-tron that is fast growing. Besides vehicles, a strong After Sales performance is key for customer satisfaction.
“Malaysia offers a central and well-connected location which perfectly suits our plans to expand our foothold in the region,” he said.
The new site offers improved distribution and process efficiency. Located in the free trade zone with direct port connectivity, the warehouse processing is enhanced by as much as 15 per cent.
The new facility is also customised to Volkswagen Group’s requirements, where storage systems like semi-automated paternoster and vertical narrow aisle are built for better warehouse space and process optimisation.
“Our new Parts Distribution Centre in Malaysia undoubtedly strengthens Volkswagen Group’s global After Sales supply chain, a key milestone in providing improved genuine parts delivery to our customers in Asia Pacific.
“We were pleased by the ease of implementing our project here and the assistance given by MIDA,” said the group’s After Sales head, Roman Havlásek.
The group’s project was facilitated by the Global Trading Centre (GTC) scheme, which was announced in Budget 2021, to encourage multinational corporations(MNCs) and local companies alike to establish their global and regional distribution hubs.
MIDA welcomes investments such as Volkswagen Group that strengthen the linkages within the local industry, create jobs for Malaysians and enhance Malaysia’s positioning as a global supply chain hub.
The GTC scheme is an enhanced, comprehensive scheme which provides tax incentive and facilitation to ease import and export activities and aims to support companies in key manufacturing and services sectors venturing into procurement, distribution and trade activities to further strengthen their global supply chain.
Further information can be obtained from the Business Services and Regional Operations Division at MIDA or www.mida.gov.my.