Hyundai Motor to build first plant in Malaysia with RM2.16 Billion Investment

KUALA LUMPUR:  Big news has arrived from South Korea: Hyundai Motor will establish its first manufacturing plant in Malaysia next year, representing a significant RM2.16 billion investment.

The announcement was made by Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia's Minister of Investment, Trade, and Industry, during a press briefing held for Malaysian media accompanying Prime Minister Datuk Seri Anwar Ibrahim's official visit to South Korea. The minister also had a closed-door meeting with South Korean conglomerates, including Hyundai Motor and OCI Holdings, Bernama reported.

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"This is a major investment," Tengku Zafrul said, highlighting its scale and impact. "Seven car models will be produced over the next five years. The plant, located in Kulim, Kedah, will open next year."

This marks Hyundai's largest automotive investment in Malaysia to date and is expected to create numerous job opportunities for locals.

Currently, some Hyundai models, including the Santa Fe, are already assembled in Kulim. However, this is done under a contract manufacturing arrangement with a local company, Inokom Corporation Sdn Bhd.

This announcement is a significant confidence boost for Malaysia, especially after Hyundai shifted its Asia Pacific regional headquarters to Indonesia in 2021.

At the time, the move was driven by comparatively lower demand for Hyundai vehicles in Malaysia versus other markets. However, despite the relocation, Hyundai has continued to maintain a solid presence in Malaysia.

The brand operates through Hyundai-Sime Darby Motors (HSDM), serving as the sole distributor and exclusive importer of Hyundai vehicles in the country. Moreover, Hyundai holds a 15% equity stake in Inokom Corporation Sdn Bhd, a key auto assembler in Kulim, Kedah. This facility currently assembles models such as the Santa Fe for the Malaysian market, ensuring the brand remains an active player in the local automotive industry.

The establishment of a dedicated Hyundai facility seems to reinstate the brand’s confidence in Malaysia as a strategic production hub in the region, with long-term benefits for the local automotive industry and workforce.

Currently, Hyundai Malaysia offers a small but good range of vehicles catering to diverse needs and preferences. Among the lineup is the Hyundai Santa Fe, a mid-size SUV known for its spacious interior and advanced safety features, making it a popular choice for families.

They also have the once popular Hyundai Tucson, that delivers modern design and practicality suited for urban and suburban lifestyles.

In the electric vehicle segment, Hyundai presents the IONIQ 6, a sleek sedan offering impressive range for eco-conscious drivers, alongside the IONIQ 5, a futuristic electric crossover featuring cutting-edge technology and rapid charging capabilities.

They also have models that are affordable and practical, starting from the subcompact Hyundai Creta, which  provides a stylish option for city commuting.

Larger families or those requiring more space can opt for the Hyundai Palisade, a full-size SUV designed for comfort and long-distance travel. Additionally, the Hyundai Staria 10-seater serves as a versatile multi-purpose vehicle, ideal for businesses or large groups.

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