20 years of BMW Group in Malaysia

BMW Group Malaysia has now been in Malaysia for 20 years, having been one of the early global carmakers to establish its own marketing and sales subsidiary after the government revised conditions for investors in the late 1990s.

More assured of being able to have control of its own business, it made investments progressively which not only grew its business but also contributed to the growth and development of the Malaysian auto industry in various ways. In the process, it has solidified its position as a leader in the market’s premium segment.

Here are some highlights from the past two decades of the BMW Group’s activities and initiatives in Malaysia…

BMW sets up local subsidiary
In 2003, the BMW Group established the headquarters of BMW Group Malaysia in Cyberjaya, an IT-themed area that was part of the Multimedia Super Corridor. This would become an important base which would play a crucial role in BMW’s business in the country as well as the region.

Over the years, it would expand to include other business units such as the National Sales Centre and the National Financial Services Centre, supporting the BMW and MINI operations in Malaysia.

Recognising the significance of data management, BMW also established the BMW Group Data Centre (GDC) in Cyberjaya. The GDC serves as a central hub for data storage, processing, and analysis, enabling BMW to harness valuable insights and optimize its operations.

Additionally, the BMW Group Regional Training Centre was established in Cyberjaya to provide comprehensive technical and non-technical training programs for the BMW, MINI and Rolls-Royce brands in the Asia-Pacific region. In recent times, these programs have also included Digital Systems and High Voltage Expertise to support the development and sales of electric vehicles.

Local assembly of BMW and MINI models
Although BMW cars were assembled in Malaysia as far back as 1981, these activities were done under contract assembly by its importer and distributor. Initially, the cars (3-Series and 5-Series) were assembled at the SMI factory in Sarawak and then transferred to AMI in Selangor in the late 1980s when Tractors Malaysia was appointed as distributor for the German brand.

At AMI, the BMW model range increased with the inclusion of the 7-Series (E38), with a special section dedicated to BMW operations. However, by 2007, the plant ceased operations and BMW moved assembly operations to the Sime Darby-owned Inokom factory in Kedah.

With the move to Inokom, BMW Group Malaysia decided to become directly involved in the manufacturing business and set up a dedicated assembly facility within the factory. The facility has  played a vital role in producing BMW and MINI vehicles locally, not only for the Malaysian market but also catering to the broader needs of the BMW Group in the Asia-Pacific region.

In 2018, a major development in local production was the assembly of BMW engines by Sime Darby Auto Engineering. The new engine assembly facility, adjacent to the Inokom site, was the result of a partnership and initiatives of Sime Darby Motors and the BMW Group.

Regional Parts Distribution in Johor
A year after BMW Group Malaysia began operations in Cyberjaya, it also opened a Parts Distribution facility at Port of Tanjung Pelepas in Gelang Patah, Johor. The total investment was around RM36.7 million. Besides Malaysia, it also served 19 markets in the Asia-Pacific region.

The Regional Parts Distribution facility shortened times for delivery of parts. It was also especially beneficial for BMW Malaysia because it could ensure aftersales support for more models. Any model sold in another market could also be sold in Malaysia as the parts would then be available at the Johor facility.

In 2017, the Parts Distribution Centre was relocated to the Free Industrial Zone of the Senai International Airport. With an investment of more than RM130 million, it had a new and much larger facility which would support up to 23 markets in the Asia-Pacific region.

The new facility demonstrated BMW’s commitment to serving customers in the region and ensuring their satisfaction, as well as maintaining the parts supply chain in accordance with BMW standards.

Extensive dealership network
In the years the BMW Group has been operating in Malaysia, there has been continued growth in the dealership network to cater to a wider customer base. Today, there are 23 authorized dealerships nationwide which handle the BMW, MINI and Motorrad (motorcycles) brands. All of them offer sales, service, spare parts and other related services to support owners.

Together with network development, BMW Group Financial Services has also been actively growing its portfolio. Introduced in Malaysia in 2007, it has been providing a range of financial solutions to customers in the country. Together with insurance and leasing options, customers have a convenient and seamless process for purchasing and owning a BMW vehicle. Last year, over 35% of vehicles delivered by BMW Group Malaysia were financed by BMW Group Financial Services.

Advanced Driver Training
BMW was the first car company to offer advanced driver training in Malaysia. The very first training session was held at the old Batu Tiga Circuit in 1985. The lessons were a condensed version of the BMW M course which had begun in Germany in 1977 and were conducted by a team led by famous rally driver, Rauno Aaltonen.

The success of this event, known as ‘M Fascination’, led to a more regular series of advanced driving events in later years. BMW Driver Training is now an established activity not only in Malaysia but also for other markets in the region.

Held at the Sepang International Circuit, different skill levels are available and training is by instructors specially certified by BMW. Participants not only become better drivers but can also explore the high limits of BMWs safely.

Focussed on sustainability since 2009
Sustainability is very much a part of everything BMW Group Malaysia does today and its focus on this goes back to 2009 when BMW Group’s Efficient Dynamics initiative was introduced. The initiative encompassed an array of fuel consumption-reducing technologies across most of the BMW model range.

Being a fundamental link in the DNA of all BMW models, Efficient Dynamics has continued to evolve over the years, optimizing every aspect of the vehicle, not just the powertrain. This has enabled BMW Group Malaysia to offer environment-friendly products and transition into the age of electrification in this decade.

Introduction of xDrive
Although BMW had all-wheel drive models as far back as the 1980s, it was in 2003 that it introduced the xDrive all-wheel drive system which used an electronically-actuated clutch-pack differential to intelligently vary the torque between the front and rear axles.

xDrive made its debut in Malaysia with the X3 and the updated X5 (E53), bringing greater grip (especially in slippery conditions) and enhancing handling. Though used mainly for the Sports Activity Vehicles in earlier years, xDrive is now also offered with other models for enhanced driving dynamics, particularly with the M models.

Electromobility and electrification
While the impetus in electrification has only accelerated in the past two years (in Malaysia), BMW Group Malaysia was already aligning itself with the nation’s goal to foster energy-efficient vehicles (EEVs) under the National Automotive Policy (2014) in 2018.

Its first step was to introduce a battery electric model, the i3, which was the forerunner of many other electrified models to be launched in the country. Prior to the new generation of fully electric models like the iX and i7, the company introduced plug-in hybrids (PHEVs) as a transitional phase.

BMW Group Malaysia also been among the more active car companies in helping to build the EV charging network. Since 2022, it has established over 1,000 charging points around Peninsular Malaysia for its BMW and MINI customers.

Besides some 100 charging points at BMW and MINI dealerships, owners also have access to hundreds of facilities through partnerships with service providers.

BMW Safety 360°
As a company that sells high-performance vehicles, BMW knows that it also has a responsibility to protect those who travel in its vehicles. Besides having advanced safety technologies in the vehicles with BMW Safety 360°, BMW Group Malaysia has also supported and promoted efforts to protect children.

In 2019, it introduced a programme to help parents in the B40 income group purchase childseats by providing a subsidy. This was an especially important initiative as the mandatory requirement would come into effect in 2020.

The programme remains part of the BMW Safety 360° initiative and today, many BMW customers also contribute indirectly to it. For each contract to purchase a new vehicle with financing by BMW Financial Services Malaysia, RM100 will be given to the programme. This will be given as a subsidy to purchase childseats which cost between RM199 and RM499.

Fuelling creativity in the arts
Apart from its car-related activities, BMW Group Malaysia has also been involved in cultural events, especially the arts. An enduring activity has been the BMW Shorties, an annual short film competition. An extension of  BMW Malaysia’s support for the creative industry, this platform encourages aspiring filmmakers to showcase their skills and creativity, while also nurturing talent and providing a launchpad for their careers.

By recognizing and celebrating the power of story-telling through film, BMW Malaysia has played a pivotal role in inspiring and empowering the next generation of Malaysian filmmakers.

“As we celebrate the 20^th anniversary of BMW Group Malaysia this year, we are reminded that it is our ambition and our strategies for the Malaysian automotive sector that have brought us here today. Our goal is not only to become the leading automaker in the premium segment here but also to establish ourselves as the market leader for electrified vehicles in the country. The years to come are building up to be exciting ones, and we are ready to continue delivering not just the Premium Ownership Experience, as we have done for the last two decades, but now, also Sheer Electric Driving Pleasure,” said Hans de Visser, Managing Director of BMW Group Malaysia.