Inokom’s vehicle manufacturing complex in Kulim, Malaysia.

Hyundai Motor announced it plans to invest up to US$480m in Malaysia over the next five years to increase production capacity and expand its share of South-east Asia’s second-largest vehicle market, according to reports from South Korea.

The automaker confirmed it will continue to collaborate with its local partner Inokom Corporation, a unit of the local Sime Darby Motors group, with the new investment programme scheduled to begin in 2025. The two companies will work together to upgrade the existing assembly plant in Kulim, which currently makes the ageing Santa Fe SUV model, and introduce a broader range of updated models.

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Hyundai said it plans to launch local assembly of its Staria minibus from mid-2025 at the Kulim facility from imported completely knocked down (CKD) kits, with a targeted output of 20,000 units per year. The company said it will further expand its line-up later on with the introduction of locally-assembled Hyundai and Genesis mid and large SUVs and MPVs, focusing initially on internal combustion engine (ICE) and hybrid-electric vehicles (HEVs) before transitioning to electric vehicles (EVs) – in line with Malaysia’s emissions reduction policies.

Hyundai Motor said it expects to export around 30% of its Malaysian vehicle output to other markets in South-east Asia by the end of the decade. The company also said it plans to promote battery electric vehicle (BEV) sales in the country, build charging stations and establish a battery assembly plant later in the decade.

Hyundai confirmed in a statement: “We made this investment decision considering the growing importance of Southeast Asia and the Malaysian market. We aim to contribute to the economic and social development of the region through job creation and local talent development.”

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