Kia Malaysia has taken a major step forward in its localisation and manufacturing ambitions with the signing of a Memorandum of Understanding (MoU) with Stellantis Malaysia, paving the way for expanded local vehicle assembly operations and future regional growth.

The partnership represents a significant milestone in Kia’s long-term strategy to strengthen its presence in Malaysia while enhancing its manufacturing capabilities to support both domestic and export markets across ASEAN.

According to Kia Malaysia and Kia Sales Malaysia President and Chief Executive Officer Hyung Ho Kim, the collaboration aligns with the company’s broader vision to “Return, Rebuild, and Reposition” the Kia brand in Malaysia. By leveraging Stellantis Malaysia’s manufacturing expertise and the country’s established automotive supply chain ecosystem, Kia aims to reinforce its local footprint and improve its readiness for future model expansion.

Under the agreement, Stellantis Malaysia will serve as Kia’s contract assembly partner, with production activities taking place at Stellantis’ manufacturing facility in Gurun, Kedah. The plant features modern production infrastructure and operates in compliance with the latest ISO 9001 Quality Management System standards, ensuring a high level of manufacturing quality and operational efficiency.

The Gurun facility is designed to support multi-model production across a variety of powertrains, providing Kia with the flexibility to assemble its current range of locally assembled vehicles, including the Sportage and Carnival, while also accommodating future model introductions. Production under the new partnership is expected to begin in the third quarter of 2026.

Stellantis ASEAN Managing Director Isaac Yeo described the agreement as an important development for Malaysia’s automotive sector, highlighting the role of industry collaboration in supporting long-term growth and economic development. He noted that the continued utilisation and development of the Gurun facility would contribute to creating value for industry partners, suppliers, and the wider manufacturing ecosystem.

Located within the Gurun Industrial Estate, the manufacturing complex has been operational since 2021 and spans approximately 140 acres. The site includes a main assembly plant, paint and body shop, two-storey office building, dedicated supplier zones, and an on-site test track. More than 400 skilled personnel are currently employed at the facility.

Beyond supporting local demand, the collaboration also lays the groundwork for Kia’s export ambitions. Vehicle assembly for regional export markets is expected to commence alongside production for the Malaysian market, reinforcing the brand’s commitment to becoming a stronger player within the ASEAN automotive landscape.

The partnership marks another important chapter in Kia’s growth journey, providing the foundation for greater manufacturing scalability, improved operational flexibility, and future product expansion. As Kia continues to invest in Malaysia, the agreement signals confidence in the country’s automotive industry and its role as a strategic manufacturing hub for the region.