Kia Malaysia Partners with Stellantis for Local Assembly Operations in Gurun – A New Chapter for the Brand’s Malaysian Ambitions

Kia Malaysia has taken a significant step towards strengthening its presence in the local automotive industry by announcing a strategic partnership with Stellantis Malaysia for the assembly of its future locally assembled (CKD) vehicles in Malaysia.

Through a newly signed Memorandum of Understanding (MoU), Stellantis Malaysia will become Kia’s contract manufacturing partner, with vehicle production set to take place at the Stellantis manufacturing facility in Gurun, Kedah. Production is expected to commence in the third quarter of 2026, marking the beginning of a new phase in Kia’s long-term growth strategy for Malaysia and the wider ASEAN region.

A Strategic Shift for Kia Malaysia

The collaboration forms part of Kia’s “Return, Rebuild and Reposition” strategy, which aims to strengthen the brand’s market position, expand its product offerings, and establish a stronger manufacturing footprint in Malaysia.

For local consumers, the move signals Kia’s commitment to long-term investment in the country, while creating opportunities for future model expansion, including the potential introduction of electrified and fully electric vehicles assembled locally.

The decision also represents a shift in Kia’s local assembly operations. Previously, Kia CKD models such as the Carnival and Sportage were assembled at Sime Darby Motors’ Inokom facility in Kulim, Kedah. Under the new arrangement, production activities will gradually transition to the Stellantis plant in nearby Gurun.

Why the Gurun Plant Matters

The Stellantis Gurun facility is no stranger to the automotive industry. Spanning approximately 140 acres, the plant features a comprehensive manufacturing ecosystem that includes a main assembly facility, paint and body shop, on-site test track, vendor zones, supplier facilities, and administrative offices.

The facility currently employs over 400 trained personnel and operates according to internationally recognised quality management standards, providing the manufacturing capability required to support Kia’s future expansion plans.

More importantly, the plant has been designed to accommodate multiple vehicle platforms and powertrain technologies, allowing it to assemble not only current Kia models such as the Sportage and Carnival, but also future hybrid and electric vehicle models should the company decide to localise them.

Strengthening Malaysia’s Automotive Ecosystem

Beyond vehicle production, the partnership reflects the growing importance of Malaysia as a regional automotive manufacturing hub.

By leveraging local suppliers, skilled workforce capabilities, and established automotive infrastructure, both Kia and Stellantis aim to create additional value throughout the industry supply chain while supporting economic growth and industrial development.

According to Kia Malaysia and Kia Sales Malaysia President and CEO Hyung Ho Kim, the partnership will help reinforce manufacturing quality, support future model expansion, and strengthen Kia’s regional growth ambitions.

Meanwhile, Stellantis ASEAN Managing Director Isaac Yeo described the agreement as an important milestone that demonstrates how collaboration between industry players can drive long-term growth and strengthen Malaysia’s manufacturing ecosystem.

Potential for Future EV Production

The timing of the partnership is particularly interesting as Stellantis has already begun local assembly of the Leapmotor C10 electric vehicle at the Gurun facility, making it the first fully electric model to be assembled there.

With the plant already supporting EV production and the upcoming introduction of the Leapmotor B10, industry observers may view Kia’s move as a strategic foundation for future electrified Kia models in Malaysia.

While Kia has yet to confirm specific models for local production beyond its current lineup, the manufacturing flexibility offered by the Gurun facility could open the door for a broader range of vehicles in the coming years.

Looking Ahead

The partnership between Kia Malaysia and Stellantis Malaysia represents more than just a manufacturing agreement. It signals Kia’s renewed confidence in the Malaysian market and highlights the country’s growing role within the regional automotive landscape.

As production preparations begin ahead of the planned Q3 2026 start date, industry watchers will be keeping a close eye on which Kia models become the first to roll out from the Gurun production line and whether electrified vehicles will form part of the brand’s next chapter in Malaysia.