Kia Malaysia has signed a Memorandum of Understanding (MoU) with Stellantis Malaysia to use the latter’s manufacturing facility in Gurun, Kedah as a contract assembler for Kia’s local assembly (CKD) operations. Production is scheduled to commence in Q3 2026.
Under the agreement, Stellantis Malaysia will assemble Kia vehicles at its Gurun facility, which has been operational since 2021 and spans approximately 140 acres. The facility includes a main assembly plant, body and paint shop, on-site test track, office building, and dedicated vendor and supplier zones, employing more than 400 personnel. Recall that prior to this, Kia’s CKD operations were carried out at the Inokom facility in Kulim, Kedah.
Initial models to be assembled are the Kia Sportage and Kia Carnival, with the facility designed to accommodate future models as well. Assembly for export markets is planned to commence in tandem with local market supply.
Hyung Ho Kim, President and CEO of Kia Malaysia and Kia Sales Malaysia, said, “This collaboration marks a key milestone in Kia’s strategy to Return, Rebuild, and Reposition Kia in Malaysia. 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.”
Isaac Yeo, Managing Director of Stellantis ASEAN, 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.”
