Kia has signed a memorandum of understanding (MoU) with Stellantis in Malaysia for local assembly of Kia vehicles, with production due to start in the third quarter of this year.
Under the arrangement, Stellantis Malaysia will act as Kia’s contract assembler for completely knocked down (CKD) operations.
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Production will take place at Stellantis Malaysia’s manufacturing facility in Gurun, Kedah.
The agreement is part of Kia Malaysia’s long-term localisation and manufacturing plan and is aimed at expanding the brand’s CKD vehicle operations for the Malaysian market and regional export markets.
Kia Malaysia and Kia sales Malaysia president & CEO Hyung Ho Kim said: “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, in line with our Malaysian and regional growth ambitions.”
The plant has been in operation since 2021 and is set up to support multi-model assembly across different powertrains.
Kia stated that the facility can handle production of its current models, including the Sportage and Carnival models, as well as future models.
The MoU represents the next stage of Kia Malaysia’s manufacturing plans in Malaysia and the broader ASEAN region, with export assembly scheduled to begin alongside supply for the domestic market.
Stellantis ASEAN managing director Isaac Yeo added: “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.”
Last week, Stellantis Malaysia began local assembly of Leapmotor electric vehicles at its Gurun manufacturing facility in Kedah, with the C10 SUV as the first model off the line.
The move marked the formal start of Stellantis Malaysia’s Leapmotor manufacturing operations in the country, which the company said is part of a broader push to position Malaysia as a regional EV manufacturing hub.
