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).
