NAZA has been testing the water for Peugeot sales in Malaysia with a locally assembled version of the 206 and has found it very well received. But a new GBP100 million manufacturing plant at Gurun in Malaysia will serve the ASEAN region, marking Peugeot's first production hub in the region and taking advantage of intra-ASEAN tax breaks. The result is that locally assembled 207s will cost consumers considerably less than imported models.

To qualify as ASEAN produced, there must be substantial local content. Peugeot is satisfied that the products that have been sourced meet its standards.

The target is for 5,000 207s to be sold annually starting next year.