The industrial revolution especially in the IR4.0 era have driven many states of the art technologies to be introduced. The automotive industry as well as many other key industries have also been greatly influenced. The rapid development of automotive industries in Europe have created wide industry gap between European Union (EU) and developing countries such as in South East Asia (SEA). Indulging this situation, FH Joanneum, Austria together with European partners from FH Aachen, Germany and Politecnico Di Torino, Italy are taking initiative to close down the gap utilizing the Erasmus+ United Capacity Building in Higher Education grant from EU. A consortium was founded to engage with automotive technology transfer using the European framework to Malaysian, Indonesian and Thailand Higher Education Institutions (HEI) as well as automotive industries in respective countries. This could be achieved by establishing Engineering Knowledge Transfer Unit (EKTU) in respective SEA institutions guided by the industry partners in their respective countries. This EKTU could offer updated, innovative and high-quality training courses to increase graduate’s employability in higher education institutions and strengthen relations between HEI and the wider economic and social environment by addressing University-industry cooperation which is the regional priority for Asia. It is expected that, the Capacity Building Initiative would improve the quality of higher education and enhancing its relevance for the labor marker and society in the SEA partners. The outcome of this project would greatly benefit the partners in strong and complementary partnership targeting the automotive industry and enhanced larger scale international cooperation between the European and SEA partners. It would also prepare the SEA HEI in sustainable partnership with Automotive industry in the region as a mean of income generation in the future.