Stellantis has marked a major manufacturing milestone in Malaysia with the start of local production of the PEUGEOT 408 at its Gurun plant in Kedah.
The fastback, powered by an updated 1.6-litre turbocharged PureTech engine with Euro 6 emissions compliance, is being positioned as a regional export model, with Taiwan confirmed as the third destination after Thailand in 2024 and Cambodia in 2025.
To support the programme, the facility received an investment of €1.5 million (approximately RM7.7 million), which funded upgrades to the production line as well as specialised R&D work for powertrain calibration and localisation of components.
The revised powertrain delivers 225 hp – matching the output of the plug-in hybrid variant – while retaining a relatively light 1,468 kg kerb weight, contributing to both performance and efficiency. Stellantis is also assessing additional Asia-Pacific markets for future exports.
The production kick-off forms part of a wider plan to reposition the Gurun plant as a regional manufacturing hub. Stellantis is targeting full utilisation of the facility with a long-term goal of exporting up to 280,000 vehicles to 20 countries across the Asia-Pacific region by 2028.
The expansion strategy goes beyond a single model. Gurun is being prepared to support the assembly of battery-electric vehicles, internal combustion models and mild hybrids. This includes the upcoming local assembly of Leapmotor EVs, starting with the Leapmotor C10, backed by a further €5 million investment (approximately RM25.6 million).
As the first model introduced under the Stellantis Malaysia entity, the locally built PEUGEOT 408 represents a significant shift for the brand in this region. The 2023 Red Dot Design Award winner features a completely reworked fastback design and a new-generation engineering package, underlining Peugeot’s renewed push in both the Malaysian market and its export operations from Gurun.
With fresh capital injection, export market expansion and multi-powertrain readiness, the Kedah plant is set to play a central role in Stellantis’ regional growth strategy.
