Kia Malaysia has taken a significant step in its long-term localisation strategy through a new partnership with Stellantis Malaysia, paving the way for expanded local vehicle assembly operations and future regional growth.

The collaboration was formalised through the signing of a Memorandum of Understanding (MoU), under which Stellantis Malaysia will serve as Kia’s contract assembler for completely knocked down (CKD) vehicle production at its manufacturing facility in Gurun, Kedah.

According to Kia Malaysia and Kia Sales Malaysia President and Chief Executive Officer Hyung Ho Kim, the partnership supports the company’s strategy to “Return, Rebuild, and Reposition” the Kia brand 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,” he said.

Enhancing The Automotive Market

Production is expected to commence in the third quarter of 2026, with the facility capable of assembling Kia’s current model lineup, including the Sportage and Carnival, as well as future vehicles across various powertrain technologies.

For Stellantis Malaysia, the collaboration reinforces the company’s commitment to strengthening Malaysia’s automotive manufacturing ecosystem. Stellantis ASEAN Managing Director Isaac Yeo said the agreement highlights the importance of industry collaboration in driving long-term growth and economic development.

Located within the Gurun Industrial Estate, the Stellantis manufacturing facility has been operational since 2021 and spans approximately 140 acres. The site features a comprehensive production setup that includes an assembly plant, paint and body shop, test track, office facilities, and dedicated supplier zones. The plant currently employs more than 400 skilled personnel and operates in accordance with ISO 9001 Quality Management System standards.

The partnership is expected to enhance Kia’s operational flexibility and manufacturing scalability while supporting future model introductions. In addition to serving domestic demand, the facility will also support export-oriented production, reinforcing Kia’s ambitions to strengthen its presence across ASEAN markets.

As Kia continues to expand its footprint in the region, the agreement marks another milestone in the brand’s efforts to establish a stronger manufacturing base in Malaysia and position itself for long-term growth.