Kia Malaysia Partners with Stellantis Malaysia to Strengthen Local Manufacturing Operations
Strategic collaboration supports Kia’s long-term localisation strategy and future CKD expansion in Malaysia and ASEAN
Kia Malaysia, the production division for Kia motor vehicles in Malaysia, today announced a strategic partnership with Stellantis Malaysia through the signing of a Memorandum of Understanding (MoU), marking a significant milestone in Kia’s long-term localisation and manufacturing strategy.
The collaboration reflects Kia’s commitment to strengthening its operational presence in Malaysia while supporting future growth in locally assembled (CKD) vehicle production for both domestic and regional markets.
“Kia’s collaboration with Stellantis Malaysia marks a key milestone in our strategy to Return, Rebuild, and Reposition Kia in Malaysia,” said Hyung Ho Kim, President and Chief Executive Officer of Kia Malaysia and Kia Sales Malaysia.
“By leveraging Stellantis Malaysia’s manufacturing expertise and Malaysia’s established automotive supply chain ecosystem, we are well-positioned to strengthen our local footprint while ensuring manufacturing quality and readiness to support future model expansion in line with our Malaysian and regional growth ambitions.”
Stellantis ASEAN Managing Director, Isaac Yeo, said, “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.”
Strengthening Local Manufacturing Capabilities
Under the partnership, Stellantis Malaysia will serve as Kia’s contract assembler for CKD operations at its manufacturing facility in Gurun, Kedah.
The facility features established production infrastructure and manufacturing capabilities that comply with the latest ISO 9001 Quality Management System (QMS) standards. Designed to support multi-model assembly across a range of powertrains, the plant is capable of producing Kia’s current line-up, including the Kia Sportage and Kia Carnival, as well as future models.
Production is scheduled to commence in the third quarter of 2026.
Located within the Gurun Industrial Estate, the Stellantis manufacturing facility has been operational since 2021 and spans approximately 140 acres. The site includes a main assembly plant, paint and body shop, dedicated test track, two-storey administration building, and integrated supplier and vendor zones. The facility currently employs more than 400 highly trained personnel.
Supporting Kia’s Long-Term Growth Strategy
The collaboration is expected to strengthen Kia’s manufacturing ecosystem in Malaysia while enhancing operational flexibility, scalability, and readiness for future product introductions.
