KUALA LUMPUR: Kia Malaysia and Stellantis Malaysia have inked a memorandum of understanding (MoU) for completely knocked down (CKD) vehicle operations.
Under the collaboration, Stellantis Malaysia will serve as Kia’s contract assembler for CKD operations at its manufacturing facility in Gurun, Kedah.
The facility features established production infrastructure and manufacturing capabilities that comply with the latest ISO 9001 Quality Management System (QMS) standards.
Designed to support multi-model assembly across diverse powertrains, the facility is equipped to accommodate the production of all current Kia models, namely the Sportage and Carnival, as well as future models.
Production is due to start in the third quarter of 2026.
Located in Gurun Industrial Estate, Kedah, the Stellantis manufacturing facility has been operational since 2021 and spans 140 acres housing the main assembly plant, a two-storey office building, paint and body shop, an on-site test track, and dedicated vendor and supplier zones.
The plant currently employs more than 400 highly trained personnel.
Kia Malaysia, the production division for Kia motor vehicles in Malaysia, says this marks a significant milestone in Kia’s long-term localisation and manufacturing strategy in Malaysia.
The collaboration underscores Kia’s continued commitment to strengthening its operational presence in Malaysia while supporting the brand’s long-term ambitions to expand its CKD vehicle operations for both the Malaysian market and the wider export markets within the region.
Kia Malaysia and Kia Sales Malaysia president and CEO Hyung Ho Kim said, “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, in line with our Malaysian and regional growth ambitions,” he added.
Stellantis Asean managing director Isaac Yeo said, “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.”
