With Hyundai investing significantly in Malaysia, what can we expect to see?
Hyundai Motor Co. has announced a significant investment plan of nearly USD480 million (roughly RM2,132,206,205) in Malaysia, set to take place over the next five years, starting in 2025. The investment aims to boost Hyundai’s production capacity in the rapidly growing Southeast Asian market.
The South Korean automaker revealed this news through Yonhap News Agency on Tuesday. As part of the initiative, Hyundai will collaborate with its Malaysian partner, Inokom Corp, to upgrade the existing complete knockdown (CKD) unit assembly plant.
Moreover, the plant currently produces the older-generation Santa Fe SUV, but the upgrade will allow for more advanced production. The renovated CKD plant is slated to begin production of Hyundai’s versatile multipurpose vehicle and the Staria minivan by mid-2025. There are also plans to expand the product range further to include mid-to-large SUVs, catering to the increasing demand in the region.
The initial production scale at the upgraded facility is expected to reach 20,000 units per year. Hyundai plans to gradually increase production capacity as the facility’s operations scale up. Vehicles produced at the new facility will not only be sold in Malaysia but also marketed across other Southeast Asian countries, strengthening Hyundai’s presence in the region.
Hyundai’s investment plan also emphasizes its commitment to the development of Malaysia’s electric vehicle (EV) ecosystem. The automaker aims to play a pivotal role in expanding EV sales, developing charging infrastructure, and establishing battery production facilities in Malaysia.
On top of that, this effort aligns with Hyundai’s broader strategy to support the growth of sustainable mobility in Southeast Asia. In a statement, Hyundai expressed that the decision to invest in Malaysia was driven by the increasing importance of Southeast Asia and the Malaysian market.
The company highlighted that this initiative would create job opportunities and foster the development of local talent, contributing to the economic and social development of the region. Hyundai’s investment in Malaysia reflects its ongoing efforts to strengthen its manufacturing capabilities and establish a foothold in the growing Southeast Asian market.
With a focus on innovation, sustainability and local economic development, Hyundai is positioning itself as a key player in the region’s automotive industry. The planned upgrades to its CKD plant and support for the EV ecosystem will play a crucial role in driving Hyundai’s future success in Southeast Asia.
