Kia Malaysia has recently entered a partnership with Stellantis Malaysia for its locally assembled (CKD) vehicle operations. This move marks a major milestone in the former’s long-term localisation and manufacturing strategy on our shores. Under this agreement, Stellantis will serve as the contract assembler for Kia at its manufacturing facility in Gurun, Kedah.
According to a statement released by Kia, production is set to begin in the third quarter of this year. To start, the facility will assemble the current Kia models, including the Sportage and Carnival. At the moment, the two vehicles are being assembled at Sime Darby Motors’ Inokom plant in Kulim. With this prior arrangement set to end in five years, local production will be shifted to the Stellantis-owned Gurun facility. Furthermore, Kia plans to assemble its future models there, as the 140-acre plant is capable of supporting multi-model assembly across diverse powertrains.
To date, Stellantis has invested more than RM25 million into the Gurun manufacturing facility, which has been in operation since 2021. Aside from the main assembly plant and a two-storey office building, the location houses a paint and body shop, an on-site test track, and dedicated vendor and supplier zones. At the moment, the plant employs over 400 trained personnel. According to the company, the facility is capable of producing up to 60,000 vehicles per year.
Speaking on the collaboration, Kia Malaysia and Kia Sales Malaysia President and Chief Executive Officer Hyung Ho Kim declared the automaker’s readiness to expand its local footprint while maintaining manufacturing quality. Meanwhile, Stellantis ASEAN Managing Director Isaac Yeo affirmed the company’s commitment to support the wider automotive and manufacturing ecosystem.
On a related note, Leapmotor, a brand under Stellantis, has started producing its C10 at the Gurun plant. The company is also planning to begin assembling the B10 there within the coming months.
(Source: Kia Malaysia press release, The Edge)
