- Kia Malaysia will begin CKD vehicle production at Stellantis Malaysia’s Gurun facility in Q3 2026.
- The partnership targets annual production capacity of 19,000 vehicles over five years.
Kia Malaysia has signed a memorandum of understanding with Stellantis Malaysia to support the localisation of its vehicle manufacturing activities in Malaysia. The agreement represents a significant step in expanding Kia’s completely knocked down (CKD) assembly operations within the country and reinforces the company’s long-term commitment to strengthening its manufacturing presence in the local automotive sector.
Under the agreement, Stellantis Malaysia will serve as Kia Malaysia’s contract manufacturing partner. CKD vehicle production will be carried out at Stellantis Malaysia’s manufacturing facility located in Gurun, Kedah, with operations scheduled to begin during the third quarter of 2026. The collaboration is designed to leverage existing manufacturing resources while creating a foundation for future production growth and market expansion.
Kia Strengthens Local Manufacturing Strategy
The partnership forms part of Kia Malaysia’s broader strategy to enhance domestic manufacturing capability, improve operational efficiency, and support future regional export opportunities. By utilising Stellantis Malaysia’s established production infrastructure and operational expertise, Kia Malaysia aims to accelerate its market development plans while ensuring manufacturing readiness for upcoming vehicle introductions.
Hyung Ho Kim, president and chief executive officer of Kia Malaysia and Kia Sales Malaysia, stated that the collaboration represents an important milestone in the company’s efforts to return, rebuild, and reposition the Kia brand within the Malaysian market. He noted that the partnership allows Kia to benefit from Malaysia’s automotive supply chain ecosystem while strengthening local manufacturing capabilities and maintaining production quality standards.
Overview of the Gurun Manufacturing Facility
The Gurun manufacturing complex has been operational since 2021 and occupies approximately 140 acres. The facility incorporates an assembly plant, paint and body shop, on-site testing track, administrative offices, and dedicated supplier zones. More than 400 personnel currently work at the site, which has been designed to support multi-model vehicle production across various powertrain configurations.
According to the companies, the facility is capable of assembling existing Kia models including the Sportage and Carnival, while also providing flexibility for future products that may be introduced into the Malaysian market. The plant operates in accordance with ISO 9001 Quality Management System requirements, supporting consistent manufacturing and quality control processes.
Planned Production Capacity and Strategic Benefits
Kia Malaysia expects the partnership to improve manufacturing flexibility, increase scalability, and enhance preparedness for future model launches. The company has indicated that the programme is targeting an annual production capacity of 19,000 vehicles over a five-year period beginning from the commencement of manufacturing operations.
Key Details of the Manufacturing Partnership
The collaboration combines Kia Malaysia’s market expansion strategy with Stellantis Malaysia’s established production capabilities, creating a framework for local vehicle assembly growth.
Kia Malaysia and Stellantis Malaysia Manufacturing Programme Overview
| Category | Details |
|---|---|
| Manufacturing Location | Gurun, Kedah, Malaysia |
| Production Start | Third Quarter 2026 |
| Manufacturing Type | Completely Knocked Down (CKD) Assembly |
| Target Capacity | 19,000 Vehicles Annually |
| Facility Size | Approximately 140 Acres |
| Quality Standard | ISO 9001 Quality Management System |
Benefits for Malaysia’s Automotive Ecosystem
For Stellantis Malaysia, the agreement introduces an additional contract manufacturing programme at the Gurun facility and is expected to further utilise existing production assets. The collaboration also supports the continued development of Malaysia’s automotive manufacturing ecosystem by encouraging local production activity, improving capacity utilisation, and strengthening industry capabilities. As both companies move forward with implementation, the partnership is positioned to contribute to future manufacturing growth and vehicle assembly expansion within the country.
Frequently Asked Questions
When will Kia Malaysia begin CKD vehicle production with Stellantis Malaysia?
CKD vehicle production is scheduled to start during the third quarter of 2026 at Stellantis Malaysia’s manufacturing facility in Gurun, Kedah. Under the agreement, Stellantis Malaysia will serve as the contract assembler for Kia vehicles. The initiative forms part of Kia Malaysia’s strategy to expand local manufacturing capabilities, improve production flexibility, and support future vehicle introductions while strengthening its position in the Malaysian automotive market.
What production capacity is targeted under the partnership?
The collaboration targets an annual production capacity of 19,000 vehicles over a five-year period beginning from the start of manufacturing operations. The Gurun facility is equipped for multi-model vehicle assembly and can support various powertrain types. The partnership is expected to improve manufacturing scalability, optimise facility utilisation, and support both current and future Kia vehicle programmes in Malaysia.
What facilities are available at the Gurun manufacturing plant?
The Gurun manufacturing facility spans approximately 140 acres and includes an assembly plant, paint and body shop, on-site testing track, office facilities, and dedicated supplier zones. Operational since 2021, the site employs more than 400 personnel and supports multi-model vehicle production. The plant also operates in compliance with ISO 9001 Quality Management System standards, helping maintain manufacturing consistency and quality performance.
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