Hyundai builds RM2.16 billion plant in Kulim, promises seven CKD models in 5 years.

Hyundai Motor Company (HMC) is making a groundbreaking investment of RM2.16 billion to establish its first local assembly facility in Malaysia, set to open in 2025. Located in Kulim, Kedah, this facility represents Hyundai's most significant investment in the country. The announcement was made by Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia's Investment, Trade, and Industry Minister, during Prime Minister Datuk Seri Anwar Ibrahim’s visit to South Korea.

The plant is expected to produce seven car models within the first five years, significantly increasing the availability of locally assembled Hyundai vehicles at competitive prices, thanks to the use of locally sourced parts.

This facility will create numerous job opportunities in Kedah and contribute to Malaysia's goal of becoming a manufacturing hub for Southeast Asia. It aligns with Hyundai's broader regional strategy, complementing its plant in Indonesia, which serves as a hub for exports.

The Kulim site is also home to the Inokom plant, a joint venture involving Hyundai. Currently assembling models such as the Hyundai Santa Fe, Inokom plays a pivotal role in Hyundai's Malaysian operations. This expansion could further leverage Inokom's capabilities.

Hyundai aims to rival regional players such as Toyota and Honda as the facility is expected to boost Hyundai's footprint in ASEAN markets, where Japanese automakers currently dominate.

The establishment of the Kulim plant underlines Malaysia's strategic location and incentives for global automakers within the region. While Hyundai’s facility in Indonesia has driven significant production volumes for regional exports, Malaysia is poised to play a complementary role, focusing on high-quality assembly and local market penetration.

With this development, Malaysian consumers can expect more affordable Hyundai models in the coming years. Additionally, it positions Malaysia as a critical node in Hyundai’s ASEAN operations.

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