Hyundai Motor Company (HMC) is set to open its first local assembly facility in Malaysia in 2025 with an investment valued at RM2.16 billion, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
The upcoming Hyundai assembly plant in Kulim, Kedah, be the Korean carmaker’s largest investment in Malaysia yet, and will create many job opportunities for the nation.
“This is a huge investment. A total of seven car models will be produced within five years. The plant will be opened in Kulim, Kedah next year,” Tengku Zafrul told the Malaysian press covering Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea today.
Production at the new plant is set to begin in mid-2025 with a “premium multipurpose van”, likely referring to the Hyundai Staria. The line-up will then expand to include mid-to-large SUV and MPV models from both Hyundai and Genesis brands.
The new plant will initially focus on internal combustion engine and hybrid models, gradually expanding to include electric vehicles (EVs), the company said in a press release. Vehicles produced at the plant will be destined for both Malaysian domestic market as well as export markets to neighbouring countries, the latter estimated to take up 30% of the facility’s production facility.
Commenting on the announcement, the Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Abdul Aziz said, “Hyundai’s additional investment paves the way towards strengthening Malaysia’s role as a regional automotive hub, as envisaged by the New Industrial Master Plan 2030.”
Tengku Zafrul adds, “Hyundai’s continued commitment is also set to directly create hundreds of high-skilled, high-tech jobs for Malaysians, while creating valuable spillover impact and many more additional jobs to small and medium enterprises that support their operations.”
The minister also revealed that HMC plans to establish an EV battery pack assembly plant in its second phase of its investment plan.
The news comes after a closed door meeting held today between the government delegation, HMC, and OCI Holdings in Korea today, as part of the Prime Minsiter’s three-day official visit.
According to a statement from HMC, the upcoming Hyundai assembly plant in Kulim will be established in partnership with Inokom, its long-standing partner that currently acts as a contract manufacturer for Hyundai here in Malaysia. The facility currently assembles the facelifted 2024 Hyundai Santa Fe, the only locally-assembled model the company sells here today.
READ MORE: 2024 Hyundai Santa Fe (CKD) launched in Malaysia, from RM196k
HMC currently owns 15% of Inokom, while the carmaker’s Malaysian distributor, Sime Darby Hyundai, owns another 5%. The site also assembles models from Hyundai’s sister company Kia, BMW, MINI, Mazda, Chery, and Porsche, the latter being the first for the German carmaker outside of Europe.
Within the region, Hyundai currently assembles most of its vehicles at the wholly-owned Hyundai Motor Manufacturing Indonesia (HMMI) plant, located in Cikarang. The facility has an annual capacity of 150,000 units, with nearly half of it to be exported to neighbouring countries within Southeast Asia.
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[Edit 1:10pm: The post has been updated with more information from an official HMC press release.]
