Kia Malaysia and Stellantis Malaysia team up to develop CKD synergies.
Kia Malaysia, the production division for Kia vehicles in the country, has officially signed a Memorandum of Understanding (MoU) with Stellantis Malaysia to form a strategic local assembly partnership. This milestone marks a major step forward in Kia’s manufacturing presence, optimizing its long-term localization strategy within the region.
The agreement positions Stellantis Malaysia as the contract assembler for Kia’s upcoming locally assembled (CKD) vehicle operations. This venture is designed to support both domestic market supply and wider export demands across the ASEAN network, with production officially scheduled to commence in the third quarter (Q3) of 2026.
Gurun Plant Selected as the Manufacturing Hub
Under this strategic partnership, Kia will utilize Stellantis’ established manufacturing infrastructure located in the Gurun Industrial Estate in Kedah. Operational since 2021, the sprawling 140-acre facility serves as a robust foundation for multi-model assembly across diverse powertrain configurations.
The Gurun production facility boasts premium features and compliance benchmarks, including:
- Quality Management Standards: Fully compliant with the latest ISO 9001 Quality Management System (QMS) guidelines.
- Comprehensive Infrastructure: Houses a main vehicle assembly plant, an on-site test track, a paint shop, a body shop, a two-storey office facility, and dedicated supplier zones.
- Skilled Workforce: Powered by a highly trained team of more than 400 personnel.
The assembly lines are fully equipped to handle production for all current Kia models—specifically the popular Sportage and Carnival—as well as future model additions to the brand’s local portfolio.
Repositioning the Kia Brand in Malaysia and ASEAN
This contract assembly model grants Kia superior operational flexibility, production scalability, and manufacturing readiness, facilitating the simultaneous rollout of domestic supply and regional exports.
“This collaboration marks a key milestone in Kia’s strategy to Return, Rebuild, and Reposition Kia in Malaysia,” stated Hyung Ho Kim, President & CEO of Kia Malaysia and Kia Sales 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.”
Stellantis ASEAN Managing Director, Isaac Yeo, echoed this sentiment, highlighting the partnership’s value for the broader economy. “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.”
The Foundations of Growth
This production alignment represents a logical next step for Kia’s restructured corporate framework in the country. Following the establishment of its National Sales Company, Kia Sales Malaysia Sdn Bhd, in November 2025, the brand took full control of all nationwide sales, training, and wholesale operations effective January 2026.
By securing a dedicated regional manufacturing ecosystem through Stellantis, the global mobility brand is well-positioned to meet rising market demands and deliver on its regional growth ambitions. For vehicle sales, technical servicing, or around-the-clock roadside assistance, customers can reach out to Kia Sales Malaysia Customer Support at 1300 88 0133 or log on to the official brand hub at www.kia.com/my.
