Hyundai Motor Company (HMC) has revealed plans to invest RM 2.2 billion (USD 479 million) in Malaysia over the next five years, marking a significant step in the company’s expansion strategy for Southeast Asia. The investment is set to bolster the automotive sector in Malaysia, with the first phase of production scheduled to begin in mid-2025 at Inokom Corporation Sdn. Bhd.’s Kedah facility.
Under the new initiative, Hyundai will focus on the local assembly of a range of vehicles, starting with a premium multipurpose van, according to WapCar. The company’s expansion will later extend to include mid- and large-sized SUVs and multi-purpose vehicles (MPVs) under both the Hyundai and Genesis brands. While Hyundai has not yet disclosed the specific models to be produced, it is anticipated that the next-generation Hyundai Santa Fe and Staria, which are currently imported as completely built-up (CBU) units from South Korea, will be part of the initial lineup.
This move is a part of Hyundai’s broader strategy to support Malaysia’s sustainability objectives by focusing on internal combustion and hybrid vehicles in the early stages of production, with plans to introduce electric vehicles (EVs) in future phases. As part of this plan, approximately 30% of the vehicles manufactured in Malaysia will be exported to other Southeast Asian markets, contributing to the region’s economic development and enhancing Malaysia’s standing as an automotive manufacturing hub.
In the second phase of Hyundai’s investment, the company will establish a battery pack assembly plant for electric vehicles, which will further integrate sustainable technologies into the country’s automotive infrastructure. The investment will cover the development of six different models, including hybrid electric vehicles (HEVs).
Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry, expressed strong support for Hyundai’s investment, noting that it would play a crucial role in enhancing Malaysia’s automotive ecosystem. The Minister emphasised that Hyundai’s move is aligned with the goals set out in Malaysia’s New Industrial Master Plan 2030, which aims to position the country as a major regional hub for the automotive industry. He also highlighted that the investment would create numerous high-tech jobs and contribute to the growth of small and medium-sized enterprises (SMEs) within the industry.
This initiative is part of Hyundai’s broader strategy in Southeast Asia, which includes the establishment of an EV innovation centre in Singapore, EV cell manufacturing in Indonesia, and the production of premium EVs in Vietnam. With vehicle sales in Malaysia reaching 750,000 units annually, the country remains a pivotal market for Hyundai in the ASEAN region.
Currently, Hyundai vehicles are assembled locally at the Inokom plant in Kulim, with only the older-generation Santa Fe being produced. However, this new investment is expected to expand Hyundai’s manufacturing footprint and support the company’s long-term vision of advancing eco-friendly vehicle production in Malaysia.
Through this strategic investment, Hyundai reaffirms its commitment to driving innovation in Malaysia’s automotive industry, while reinforcing its role as a leader in the transition to sustainable transportation in the ASEAN region.
