This strategic move aims to capitalize on the region’s burgeoning automotive market, with production beginning in mid-2024. The image shows Kuala lumpur of Malaysia (Courtesy of Pixabay/CCL)
SEOUL, Nov. 26 (Korea Bizwire) – In a significant push to expand its footprint in Southeast Asia, Hyundai Motor Company has announced a $479 million (approximately 673 billion won) investment in Malaysia.
This strategic move aims to capitalize on the region’s burgeoning automotive market, with production beginning in mid-2024.
Hyundai will collaborate with local partner Inokom Corporation to launch a Complete Knock Down (CKD) assembly line for its Staria multi-purpose vehicle (MPV).
Starting with an annual production capacity of 20,000 units, the company plans to scale output over time while broadening its offerings to include mid-to-large SUVs and MPVs from its Hyundai and Genesis brands.
Aligned with Malaysia’s green initiatives, the initial production will focus on internal combustion and hybrid vehicles, gradually shifting toward electric vehicles (EVs). Approximately 30% of the vehicles produced will be exported to other ASEAN nations, with the rest catering to Malaysia’s domestic market.
Hyundai is also committing resources to foster an EV ecosystem in Malaysia. The company plans to expand EV sales, develop charging infrastructure, and support battery manufacturing facilities.
“This investment underscores the growing importance of Southeast Asia and the Malaysian market, which represents an annual demand of 750,000 units,” a Hyundai spokesperson said. “We aim to contribute to the region’s economic and social development through job creation and local talent cultivation.”
The headquarters of Hyundai Motor Group in southern Seoul (Image courtesy of Yonhap)
With this initiative, nearly half of Hyundai’s 10 global CKD facilities will be located in ASEAN countries, reflecting the automaker’s focus on the region. This diversification strategy comes as geopolitical tensions, particularly between the U.S. and China, have increased market uncertainties.
The ASEAN bloc, with a population of 670 million and a $3.6 trillion economy, offers a compelling opportunity with its robust domestic consumption and low-cost manufacturing environment.
Hyundai has already established a foothold in the region, inaugurating its first full-scale manufacturing plant in Indonesia in 2022. The company’s vehicle exports to Asia-Pacific markets, including ASEAN, have shown consistent growth, rising from 94,575 units in 2021 to 110,872 in 2023.
As Hyundai strengthens its presence in the ASEAN region, it is poised to capture a larger share of one of the world’s most dynamic automotive markets, further solidifying its global position.
Ashley Song (ashley@koreabizwire.com)
