Home Lifestyle Kia Malaysia and Stellantis Malaysia Announce Strategic Local Assembly Partnership

Kia Malaysia and Stellantis Malaysia Announce Strategic Local Assembly Partnership

(From left) Kia APAC, President & CEO, Kiseok Ahn; Kia Malaysia & Kia Sales Malaysia, President & CEO, Hyung Ho Kim; Stellantis ASEAN, Managing Director, Isaac Yeo; Stellantis ASEAN, Head of Product Planning, Devendra Bharambe
  • Kia Malaysia signs strategic agreement with Stellantis Malaysia to support upcoming CKD operations in Malaysia.
  • The collaboration strengthens Kias long-term production ambitions and support of the Malaysian automotive supply chain.
  • The partnership is expected to leverage Stellantis Malaysias manufacturing infrastructure and operational capabilities to support Kias future growth plans in the region.

KUALA LUMPUR, 8 JUNE 2026 – 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 Kias long-term localisation and manufacturing strategy in Malaysia. 

Kia Malaysia and Kia Sales Malaysia President & Chief Executive Officer, Hyung Ho Kim said, This collaboration marks a key milestone in Kias strategy to Return, Rebuild, and Reposition Kia in Malaysia. By partnering with Stellantis Malaysia and leveraging Malaysias 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. 

Stellantis ASEAN Managing Director, Isaac Yeo, said, This signing represents a meaningful milestone in strengthening Malaysias 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. 

The collaboration underscores Kias continued commitment to strengthening its operational presence in Malaysia while supporting the brands long-term ambitions to expand its locally assembled (CKD) vehicle operations for both the Malaysian market and the wider export markets within the region. 

Under the collaboration, Stellantis Malaysia will serve as Kias 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 diverse powertrains, the facility is equipped to accommodate the production of all current Kia models, namely the Sportage and Carnival, as well as future models. 

Production is scheduled to commence in the third quarter (Q3) of 2026.

Located in Gurun Industrial Estate, Kedah, the Stellantis manufacturing facility has been operational since 2021 and spans approximately 140 acres housing the main assembly plant, a two-storey office building, paint and body shop, an on-site test track, and dedicated vendor and supplier zones. The plant currently employs more than 400 highly trained personnel.

Establishing The Building Blocks Towards Kias Long-Term Growth

The collaboration is expected to strengthen Kias manufacturing ecosystem in Malaysia while improving operational flexibility, scalability, and readiness for future model introductions. This marks the next phase of the brands growth in Malaysia and the wider ASEAN market, reinforcing Kias long-term commitment to regional development and expansion.

The partnership is yet another milestone demonstrating Kias ambitions to strengthen its manufacturing capabilities and meet growing market demand, with assembly for export commencing in tandem with local market supply. 

For sales enquiries, servicing or 24-hour roadside assistance, customers may contact Kia Sales Malaysia Customer Support at 1300 88 0133 or customersupport@kia-my.com.

 

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