PHS Automotive Malaysia (PHSAM) is looking at setting up local assembly operations in Malaysia to give its Audi models an added competitive edge.
The company said the decision was spurred by its latest sales results, driven by the e-tron range.
The e-tron range accounted for 70 per cent of the brand's local sales last year, said managing director Denyu Bostandzhiev the launch of the Audi SQ8 e-tron and SQ8 Sportback e-tron recently, without providing an exact figure.
He attributed this success to the trending electric vehicle (EV) ecosystem, with many of its customers showing an interest in the powertrain.
He attributed the achievement to the draw potential of the Audi brand when paired with competitive pricing.
He said EVs, being tax-free in Malaysia at the moment, allowed them to be priced competitively, in contrast to internal combustion engine (ICE) vehicles.
He admitted that the ICE issue was a huge obstacle for Audi models.
But Bostandzhiev hopes to turn the situation around by making its models more price competitive when compared to its segment rivals.
Currently, imported vehicles can incur a tax range of between 60 and 105 per cent, which greatly affects their end-pricing.
"For example, for a model priced at RM1.7 million, at least RM900,000 is due to tax. While EVs are now 'hot' in the market, ICE models remain the number-movers globally, especially in the premium market.
"The strategy is for our ICE models to be competitively priced, like our e-tron models. This is a win-win situation for all.
"Another option to circumvent the import tax pricing is to assemble our vehicles locally," he added.
While Bostandzhiev is keen on optimising the potential of Audi's ICE models, he said the local assembly plans could include both ICE and EV production as "there is no reason to only focus on one".
SQ8 e-TRON, SPORTBACK
Audi's SQ8 e-tron and SQ8 Sportback e-tron are the company's first mass-produced models with three asynchronous motors — one at the front axle and two at the rear axle powering each wheel separately.
The front axle's electric motor has a peak output of 124 kW while the two motors at the rear axle individually produce a peak output of 98 kW for each rear wheel.
The "boost" mode pushes the front motor to produce up to 157 kW, and the two rear motors up to 138 kW each. Technically this would add up to 433 kW but the total system output is said to be limited to 370 kW by the 114 kWh battery pack.
It can accelerate from zero to 100kph in 4.5 seconds and has a top speed of 210kph,
The three-motor drivetrain is also said to enhance handling on winding roads with the two separated rear motors powering each wheel independently, allowing for precise and varied torque levels to be sent to each wheel.
The e-SUV (sport utility vehicle) can handle up to 170 kW at a DC charging point, going from 10 per cent to 80 per cent charged in 31 minutes.
Range-wise, the SQ8 e-tron can go up to 458km (WLTP) on a single charge while the SQ8 e-tron Sportback has a range of up to 471km.
The charging socket can also accept a standard mode 3 charging cable for AC charging with a wallbox at home or a public charging station. AC charging takes between 9.15 hours and 11.30 hours for a full charge, depending on the power supply.
There is also an on-board charger that allows for charging at up to 22 kW from an AC outlet.
An additional charging socket on the other side of the vehicle is also present for added convenience.
The driver can control the charging schedule from within the vehicle via the Audi Multi Media Interface (Audi MMI).
Its intelligent regeneration concept system recuperates via the electric motors alone without needing the conventional disc brakes in 90 per cent of all braking situations, which then work as generators by converting kinetic energy into electrical energy that is stored in the battery.
The cabin is a thematic mesh between luxury and sport, such as the Valcona leather front sports seats with the "S" badge embossed and a combination of leather in areas such as the upper part of dashboard and lower interior elements with decorative inserts in carbon and aluminium.
This is further enhanced by the ambient lighting package plus and LED entrance lights at the front and rear doors.
It has a four-zone climate control air conditioning system and a level-adjustable air ioniser.
The Audi Virtual Cockpit encompasses an instrument panel integrated into the wraparound dashboard, a free-standing display, a head-up display as standard, two MMI touch response displays angled in the driver's direction and Glossy Black operating buttons with haptic feedback.
The smartphone interface allows integration of most iOS and Android smartphones with the Audi MMI to control features such as navigation, music and selected apps.
The Bang & Olufsen Premium Sound System with 3D is amplified by 16 loudspeakers.
Audi's commitment to sustainability is also reflected in the interior with the use of many eco-friendly materials. For example, the plastic covers of the seat belt buckles are produced in part from mixed automotive plastic waste.
SPORTIER SILHOUETTE
The overall design of the SQ8 emphasises a higher performance value over the Q8 e-tron despite sharing similar proportions.
The 2,928mm wheelbase is similar but the SQ8 is 2mm lower and 40mm wider. The SQ8 e-tron offers up to 569 litres of storage space while the Sportback has a smaller 528 litres.
The widened bumpers are more expressive while the flow-optimised wheel arch panels portray a more muscular image. The rear end that is underscored by an aerodynamic diffuser has LED lamps.
The signature Singleframe grille (with projector lighting) is flanked by Digital Matrix LED headlamps.
Its shaping of the body for the best aerodynamic efficiency supposedly pushes the drag coefficient down to between 0.24 and 0.27, depending on body style.
Other highlight features on the exterior are red-painted brake calipers, exterior mirror housings in carbon fibre, black roof rails and a black appearance package.
The Audi Sport 22-inch alloy wheels in the five-arm "Interferenz" style come standard and finished in Titanium Gray and diamond-turned.
The Modularer E-Antriebs Baukasten (MEB), or modular electric-drive toolkit evo electronic chassis platform, of the SQ8 e-tron has adaptive sport air suspension with controlled damping for both the front and rear wheels. With precise and constant adaptation to varying road conditions, comfort and stability are maintained at their best at all times.
The ride height also adjusts automatically over a wide range of 76mm. On the highway, the body can be lowered by 26mm for enhanced stability and aerodynamic efficiency. When driving on rougher terrain (with "Offroad" mode selected), the ground clearance can be increased by 35mm to 50mm.
Despite being an SUV, the SQ8 e-tron has a low centre of gravity comparable even to a sedan. This is helped by the placement of the battery system in the floor between the axles, which also creates an axle load distribution that is almost the optimal 50:50.
The body of the SQ8 e-tron has a mixed steel-aluminium hybrid construction, which PHSAM says moderates the weight of the EV of this size with a powerful battery pack — a hybrid structure with 45 per cent greater torsional stiffness than a conventional combustion SUV for improved handling as well as reduced noise levels.
Its equipped range of advanced passive and active safety systems includes adaptive cruise control, lane departure warning, swerve assist and turn assist, and front and rear cross-traffic assist.
Other standard safety features include front-side and rear SRS airbag systems, child safety package with ISOFIX child seat anchors and top tether, direct tyre pressure monitoring system and a Park Assist package with park assist plus.
The exterior colour choices for the SQ8 e-tron and Sportback are Magnet Gray, Ultra Blue, Chronos Gray, Mythos Black, Plasma Blue, Daytona Gray and Glacier White.
The SQ8 e-tron is priced from RM519,990 while the SQ8 Sportback e-tron starts from RM529,990.