Kia Malaysia has confirmed plans to assemble the Kia Sportage and Kia Carnival in Malaysia through a strategic partnership with Stellantis Malaysia, with production scheduled to begin in the third quarter of 2026.
The agreement will see Stellantis Malaysia’s manufacturing facility in Gurun, Kedah serve as Kia’s contract assembly partner, marking a major step in the brand’s localisation strategy and long-term ambitions for both the Malaysian and wider ASEAN markets.
The partnership was formalised through the signing of a Memorandum of Understanding (MoU) between the two companies, laying the foundation for expanded locally assembled (CKD) operations and future model introductions.
Kia Malaysia and Kia Sales Malaysia President and Chief Executive Officer, Hyung Ho Kim said:
“This collaboration marks a key milestone in Kia’s strategy to Return, Rebuild, and Reposition Kia in Malaysia. By partnering with Stellantis Malaysia and leveraging Malaysia’s automotive supply chain ecosystem, Kia is poised to strengthen our local footprint while reinforcing manufacturing quality and readiness to deliver future model expansion, in line with our Malaysian and regional growth ambitions.”
Sportage And Carnival Lead Kia’s CKD Expansion
Under the agreement, Stellantis Malaysia’s Gurun facility will handle Kia’s CKD vehicle assembly operations.
The plant is designed to support multi-model assembly across various powertrain types and is capable of producing all current Kia models, including the Sportage SUV and Carnival MPV, as well as future products that may be introduced to the Malaysian market.
Production is scheduled to commence in Q3 2026, with export-oriented assembly expected to begin alongside vehicles intended for local customers.
While Kia has not announced specific production volumes or future model plans, the partnership provides the manufacturing foundation needed to support the brand’s next phase of growth in Malaysia and across the ASEAN region.
Leveraging Gurun’s Manufacturing Capabilities
Located within the Gurun Industrial Estate in Kedah, the Stellantis manufacturing facility has been operational since 2021 and spans approximately 140 acres.
The facility houses a main assembly plant, paint and body shop, two-storey office building, dedicated vendor and supplier zones, as well as an on-site test track. The plant currently employs more than 400 personnel and operates according to ISO 9001 Quality Management System (QMS) standards.
According to Stellantis, the collaboration reflects the growing importance of partnerships in strengthening Malaysia’s automotive manufacturing ecosystem.
Stellantis ASEAN Managing Director, Isaac Yeo, said:
“This signing represents a meaningful milestone in strengthening Malaysia’s automotive manufacturing ecosystem and underscores the importance of collaboration among industry players in driving long-term growth and economic development. Through the continued development and utilisation of Stellantis’ Gurun facility capabilities, we remain committed to supporting the wider automotive and manufacturing ecosystem while creating shared value for partners, suppliers, and the industry.”
Building A Regional Manufacturing Base
Beyond local production, the partnership also supports Kia’s ambition to establish a stronger regional manufacturing presence.
The company said the collaboration will improve operational flexibility, scalability and readiness for future model introductions while supporting export activities within ASEAN.
With CKD production set to begin later this year, the move represents another significant milestone in Kia’s efforts to strengthen its position in Malaysia while leveraging the country’s established automotive supply chain and manufacturing capabilities.
CarTok.my Editor’s Note
The significance of this announcement is less about any specific model and more about Kia re-establishing a production footprint in Malaysia. This partnership provides Kia with greater flexibility to grow its local presence, support future model introductions and potentially leverage Malaysia as an export hub for the wider ASEAN market.
