Kia Malaysia, Stellantis Malaysia Sign Local Assembly Partnership For CKD Operations

Kia Malaysia has signed a memorandum of understanding (MoU) with Stellantis Malaysia to support the localisation of its vehicle manufacturing operations in the country, marking a step towards expanding its completely knocked down (CKD) assembly footprint in Malaysia.

Under the agreement, Stellantis Malaysia will act as Kia Malaysia’s contract assembler, with CKD production set to take place at Stellantis’ manufacturing facility in Gurun, Kedah. Production is scheduled to commence in the third quarter of 2026.

The partnership is part of Kia Malaysia’s broader strategy to increase local manufacturing capability and strengthen its presence in the Malaysian automotive market, while also supporting future export opportunities across the region. According to the companies, the collaboration will leverage Stellantis Malaysia’s existing manufacturing infrastructure and operational capabilities to support Kia’s future growth plans.

“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,” said Hyung Ho Kim, president and chief executive officer of Kia Malaysia and Kia Sales Malaysia.

The Gurun facility, which has been operational since 2021, spans approximately 140 acres and includes an assembly plant, paint and body shop, on-site test track, office facilities, and dedicated supplier zones. The plant currently employs more than 400 personnel and is equipped to support multi-model vehicle assembly across a range of powertrains.

According to the companies, the facility is capable of producing current Kia models such as the Sportage and Carnival, in addition to future products that may be introduced in the market. The plant operates in compliance with ISO 9001 Quality Management System standards.

Kia Malaysia said the collaboration is expected to improve manufacturing flexibility and scalability while enhancing readiness for future model introductions. The company also indicated that the partnership targets an annual production capacity of 19,000 vehicles over a five-year period from the start of operations.

For Stellantis Malaysia, the agreement adds another contract manufacturing programme to its Gurun facility and is expected to further utilise the plant’s production capabilities while supporting Malaysia’s automotive manufacturing ecosystem.