Kia is taking a major step towards rebuilding its presence in Malaysia, with the brand officially confirming plans for local assembly through a new partnership with Stellantis Malaysia.
Announced via a Memorandum of Understanding (MoU) signed between Kia Malaysia and Stellantis Malaysia, the collaboration will see future Kia models assembled at Stellantis’ manufacturing facility in Gurun, Kedah, beginning in the third quarter of 2026.
The move marks a significant milestone in Kia’s efforts to strengthen its local footprint and accelerate its long-term growth plans in both Malaysia and the wider ASEAN region.
Under the partnership, Stellantis Malaysia will serve as Kia’s contract assembler, utilising its existing manufacturing infrastructure and operational expertise to support the production of Kia vehicles locally.
The Gurun plant has been designed to support multiple vehicle platforms and powertrain types, giving Kia the flexibility to introduce a wider range of models in the future.
Importantly, the facility is already capable of assembling Kia’s current Malaysian line-up, including the Sportage SUV and Carnival MPV, while also being prepared for future model introductions.
For Kia, local assembly is more than just a cost-saving exercise. Producing vehicles in Malaysia allows the company to improve pricing competitiveness, shorten supply chains, enhance parts localisation, and potentially unlock export opportunities within ASEAN.
The collaboration also supports the broader Malaysian automotive ecosystem by creating opportunities for local suppliers and strengthening the country’s manufacturing capabilities.
According to Kia Malaysia and Kia Sales Malaysia President and CEO Hyung Ho Kim, the partnership forms part of the company’s broader strategy to “Return, Rebuild and Reposition” the Kia brand in Malaysia.
By leveraging Malaysia’s established automotive supply chain and Stellantis’ manufacturing expertise, Kia aims to improve production readiness while laying the foundation for future model expansion.
Located within the Gurun Industrial Estate in Kedah, the Stellantis manufacturing facility has been operational since 2021 and occupies approximately 140 acres.
The site features a complete production ecosystem comprising a main assembly plant, paint and body shop, dedicated supplier zones, an on-site test track, and administrative facilities.
The plant currently employs more than 400 trained personnel and operates in accordance with ISO 9001 Quality Management System standards.
For Stellantis, the agreement further enhances utilisation of the Gurun facility while reinforcing its role as a regional manufacturing hub capable of supporting multiple automotive brands.
While Kia has yet to announce which models will be the first to roll off the Gurun production lines, the timing is particularly interesting.
The company recently showcased several new products at KLIMS 2026, including the Kia K4 sedan, which is widely expected to become a key challenger to established C-segment players such as the Honda Civic and Toyota Corolla.
A local assembly programme could potentially allow Kia to price future models more competitively, giving the brand a stronger position in one of Malaysia’s most competitive automotive segments.
The significance of the partnership extends beyond domestic sales. Kia confirmed that export-oriented production will commence alongside vehicles intended for the Malaysian market, highlighting the company’s ambitions to use Malaysia as a manufacturing and distribution hub for the wider ASEAN region.
With production scheduled to begin in Q3 2026, the partnership represents one of Kia’s most important strategic developments in Malaysia in recent years, setting the stage for a new era of locally assembled Kia vehicles and potentially a much broader product offensive in the years ahead.
