- Kia vehicles will begin local assembly at Stellantis’ Gurun plant in Q3 2026.
- The partnership supports Kia’s manufacturing expansion for domestic and export markets.
Kia Malaysia has entered into a new local assembly agreement with Stellantis Malaysia, marking a significant step in strengthening its manufacturing presence in Malaysia. Under the agreement, completely knocked down (CKD) vehicle assembly operations will be carried out at Stellantis’ Gurun manufacturing facility in Kedah, with production activities scheduled to begin during the third quarter of 2026. The initiative is expected to support Kia’s long-term growth strategy while improving production flexibility for both local and regional markets.
The Gurun facility will initially assemble existing Kia models, including the Sportage and Carnival, while also providing capacity for future product introductions. By leveraging an established manufacturing site, Kia aims to enhance operational efficiency and strengthen supply chain integration. The arrangement also enables the company to expand its reach beyond the domestic market by supporting vehicle exports from Malaysia to selected international destinations.
The collaboration highlights the strategic importance of the Gurun plant within the regional automotive industry. Spanning approximately 140 acres, the facility employs more than 400 personnel and features comprehensive manufacturing capabilities. These include vehicle assembly operations, paint and body facilities, an on-site test track, and dedicated vendor and supplier zones designed to support efficient production workflows.
Overview of the Gurun Manufacturing Facility
The following table summarizes key details of the Gurun plant that will support Kia’s local assembly operations.
| Facility Attribute | Details |
|---|---|
| Location | Gurun, Kedah, Malaysia |
| Production Start | Q3 2026 |
| Facility Size | 140 Acres |
| Workforce | More Than 400 Personnel |
| Initial Models | Sportage, Carnival |
The Gurun plant has a long history of involvement in Kia vehicle production. Prior to its current ownership structure, the facility assembled Kia models under Naza Automotive Manufacturing. Following the acquisition by PSA Group in 2018 and the transition to full Stellantis ownership in 2021, the site continued evolving as a key automotive manufacturing hub. Before this latest agreement, assembly of the Sportage and Carnival under Bermaz's distributorship was conducted at the Inokom plant in Kulim, Kedah.
With production moving to Gurun, Kia gains access to a facility equipped with extensive manufacturing infrastructure and established supplier support. The agreement reflects continued investment in Malaysia’s automotive sector and reinforces the country’s role as an important production base for regional vehicle manufacturing activities. As assembly operations commence in 2026, the partnership is expected to contribute to future model expansion and improved production capabilities for Kia in the region.
Frequently Asked Questions
What is the purpose of the agreement between Kia Malaysia and Stellantis Malaysia?
The agreement enables Kia Malaysia to locally assemble its vehicles at Stellantis Malaysia’s Gurun manufacturing facility beginning in Q3 2026. This arrangement supports Kia’s strategy to expand manufacturing operations in Malaysia while improving production efficiency and capacity. In addition to serving domestic demand, the facility will support export activities, allowing Kia to strengthen its regional presence and utilize an established automotive manufacturing ecosystem equipped with assembly, testing, supplier, and production infrastructure.
Which Kia models will be assembled at the Gurun plant?
The Gurun facility is expected to begin assembly operations with Kia’s existing Sportage and Carnival models. The plant will also provide flexibility for future model introductions as Kia expands its product portfolio. With comprehensive manufacturing capabilities and established supplier networks, the facility is positioned to support both current and upcoming vehicle programs. This approach allows Kia to efficiently manage production requirements while enhancing its ability to serve domestic customers and selected export markets.
What facilities are available at the Gurun manufacturing plant?
The Gurun plant is a fully equipped automotive manufacturing facility covering approximately 140 acres and employing more than 400 personnel. It includes vehicle assembly lines, paint and body operations, an on-site test track, and dedicated supplier and vendor zones. These capabilities enable efficient end-to-end vehicle production processes. The facility’s infrastructure supports quality control, testing, and manufacturing scalability, making it a strategic location for Kia’s local assembly operations and future production expansion plans.
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