Kia Malaysia has announced a partnership with Stellantis Malaysia to establish its local assembly (CKD) operations in the country, with the signing of a Memorandum of Understanding (MoU) earlier today.
Under the partnership, Stellantis Malaysia will serve as Kia’s contract assembler, where CKD assembly will be carried out at the Gurun plant in Kedah. The partnership is in line with Kia’s “Return, Rebuild, and Reposition” strategy here in Malaysia and also furthers its export goals within the region. Production is scheduled to begin in Q3 2026 at the Gurun Industrial Estate in Kedah.
Taken over from Naza Automotive since 2021, the Stellantis Gurun plan spans roughly 140 acres, accommodating the main assembly plant, a two-storey office building, a paint and body shop, an on-site test track, and dedicated vendor and supplier zones. The plant currently employs more than 400 trained personnel.
The facility features established production infrastructure and manufacturing capabilities that comply with the latest ISO 9001 Quality Management System (QMS) standards. It’s designed to support the assembly of various models with “diverse powertrains”, the company highlighted in its press release, which will allow for the accommodation of all current Kia models, consisting of the Sportage and Carnival, as well as future models – potentially EVs as well.
Kia Malaysia and Kia Sales Malaysia President and Chief Executive Officer (CEO), Hyung Ho Kim, said, “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, in line with our Malaysian and regional growth ambitions.”
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Stellantis ASEAN Managing Director, Isaac Yeo, said, “This signing represents a meaningful milestone in strengthening Malaysia’s automotive manufacturing ecosystem and underscores the importance of collaboration among industry players in driving long -term growth and economic development.”
“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,” he added.
The Stellantis Gurun plant has also begun local assembly of the Leapmotor C10 EV, marking the first fully electric EV model to be assembled at the plant. The smaller B10 is set to follow by the end of the year.
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