Kia Malaysia, the production division for Kia vehicles in Malaysia, today announced a new partnership with Stellantis Malaysia through the signing of a memorandum of understanding (MoU) to expand its local assembly (CKD) efforts.
Through this partnership, the Korean automaker is expected to leverage Stellantis Malaysia’s manufacturing infrastructure and operational capabilities at its Gurun plant in Kedah to support Kia’s future growth plans in the region.
Stellantis Gurun to Assemble Kia Models for Malaysia & Beyond
According to Kia Malaysia and Kia Sales Malaysia (KSM) President & CEO Hyung Ho Kim, this strategic partnership is part of the automaker’s plan to strengthen its operational presence in Malaysia while at the same time supporting the brand’s long-term ambitions to expand its CKD operations for both the Malaysian market and the wider export markets within the region.
This move will see Stellantis Malaysia acting as a contract assembler for Kia Malaysia at its manufacturing facility in Gurun, Kedah, with said plant being designed to support multi-model assembly across diverse powertrains and equipped to accommodate the production of all current Kia models, like the Sportage and Carnival, as well as future models.
“This collaboration marks a key milestone in Kia’s strategy to Return, Rebuild, and Reposition Kia in Malaysia. By partnering with Stellantis Malaysia and leveraging Malaysia’s automotive supply chain ecosystem, Kia is poised to strengthen our local footprint while reinforcing manufacturing quality and readiness to deliver future model expansion, in line with our Malaysian and regional growth ambitions,” the Kia Malaysia boss added.
“This signing represents a meaningful milestone in strengthening Malaysia’s automotive manufacturing ecosystem and underscores the importance of collaboration among industry players in driving long-term growth and economic development. Through the continued development and utilisation of Stellantis Gurun facility capabilities, we remain committed to supporting the wider automotive and manufacturing ecosystem while creating shared value for partners, suppliers, and the industry,” said Isaac Yeo, managing director of Stellantis ASEAN.
Production of Kia models at the Stellantis Gurun plant is set to commence sometime later in Q3 this year, starting with both the aforementioned Kia Sportage and Carnival, followed by more upcoming Kia models in the near future.
