Kia Malaysia signs agreement with Stellantis Malaysia for CKD local assembly operations in Gurun, Kedah

Kia Malaysia has announced that it has signed a strategic agreement with Stellantis Malaysia for the Korean brand’s upcoming CKD (local assembly) operations in Malaysia.

This will see Stellantis Malaysia serve as the contract assembler for Kia, at the Stellantis plant in Gurun, Kedah. Stellantis Malaysia states that production of Kia models at the facility is scheduled to begin in the third quarter of this year.

The Gurun plant is equipped to accommodate the production of current Kia models such as the Sportage and Carnival, as well as future models from the brand, Kia stated. During Kia’s time under Bermaz, local assembly of the Carnival and Sportage for Malaysia was carried out at the Inokom plant in Kulim, Kedah.

The Gurun, Kedah plant is the same location that assembled Kia vehicles under Naza from 2004, then named the Naza Automotive Manufacturing plant, and which was sold to PSA Group in 2018. Stellantis took full ownership of the plant in 2021.

Currently employing more than 400 personnel, the 140-acre facility houses the main assembly plant, a two-storey office building, a paint and body shop, an on-site test track, as well as dedicated vendor and supplier zones, according to Kia Malaysia.

“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,” Kia Malaysia and Kia Sales Malaysia president and CEO Hyung Ho Kim said in a statement.

“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,” Stellantis Asean managing director Isaac Yeo stated.

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