South Korean automaker Hyundai Motor is finally officially investing in a Malaysian plant.
Hyundai Motor is set to make a significant mark in Malaysia with the establishment of its first manufacturing plant in the country, slated to open next year in Kulim, Kedah. The RM2.16 billion investment, reported by Bernama and announced by Malaysia’s Investment, Trade and Industry, represents the South Korean automaker’s largest investment in the nation to date.
Kia already assembles vehicles locally at the Inokom plant in Kulim, so it’s a bit unclear if both sister companies will be keeping things separate in Malaysia or if some synergies between the two will form. Right now, Hyundai is in Sime Darby Motors’ orbit while Kia is distributed and marketed by Dinamikjaya, which is affiliated with Bermaz.
The announcement coincided with Prime Minister Datuk Seri Anwar Ibrahim’s official visit to South Korea, where he engaged with Hyundai Motor and other major South Korean corporations, including OCI Holdings. These meetings aim to bolster Malaysia-South Korea economic ties ahead of the 65th anniversary of diplomatic relations between the two nations, which will be celebrated next year.
Anwar’s three-day visit underscores Malaysia’s commitment to fostering closer collaboration with South Korea, a key trading partner. South Korea is currently Malaysia’s eighth-largest trading partner, and bilateral trade between the two nations reached RM114 billion in 2023. The Hyundai plant in Kulim is poised to deepen this relationship, aligning with Malaysia’s push to attract high-value investments and promote sustainable industrial development.
This investment also signals Hyundai’s broader strategy to expand its footprint in Southeast Asia, one of the world’s fastest-growing automotive markets. By setting up operations in Malaysia, Hyundai not only reinforces its position as a leading global automaker but also taps into the region’s robust demand for innovative and energy-efficient vehicles.
The upcoming facility is expected to focus on producing a mix of internal combustion engine (ICE) vehicles and electric vehicles (EVs), supporting Malaysia’s aspirations to become a regional EV hub though Hyundai have also made investments in Indonesia and Singapore, so it’s unclear which market will serve as its main hub at this point.
