Hyundai Motor Co (Hyundai) has unveiled plans to invest approximately US$480 million (~RM2.16 billion) in Malaysia over the next five years, starting in 2025, to bolster its production capacity in the region. Collaborating with its local partner, Inokom Corp, the South Korean automaker intends to upgrade its complete knockdown (CKD) assembly plant in Kulim, Kedah, which currently produces the older-generation Santa Fe SUV.
The upgraded CKD facility is scheduled to begin operations by mid-2025, producing Hyundai’s multipurpose vehicle and the Staria minivan. The production lineup will eventually expand to include mid-to-large SUVs, reflecting the growing demand for these segments in the region. Initially, the plant’s production scale will be set at 20,000 units annually, with Hyundai planning to gradually increase capacity over time.
Hyundai aims to market vehicles manufactured at the facility both domestically in Malaysia and across other Southeast Asian countries. Alongside this, the automaker reiterated its dedication to advancing Malaysia’s electric vehicle (EV) ecosystem. This includes increasing EV sales, developing charging infrastructure, and exploring the establishment of battery production facilities, marking a significant step in regional sustainability efforts.
Highlighting the strategic importance of the investment, Hyundai emphasised its intent to contribute to Southeast Asia’s economic and social progress. The company cited job creation and the development of local talent as key priorities.
Note: Earlier reports suggested that Hyundai’s new investment in Malaysia involved establishing a new factory in Kulim, Kedah. However, this appears to be incorrect, with articles later detailing that the company plans to upgrade its existing assembly plant in the state instead.
(Source: Bernama)
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