Kia Malaysia to move local assembly ops from Sime Darby Motors’ Inokom to Stellantis by 3Q2026

KUALA LUMPUR (June 8): Motor vehicle distributor Kia Malaysia will move its local car assembly operations to Stellantis Malaysia's plant in Gurun, Kedah, by the third quarter of 2026.

Kia Malaysia's completely knocked-down (CKD) vehicles are currently assembled at Sime Darby Motors' Inokom plant in Kulim, Kedah. According to Kia Malaysia, this arrangement will end after five years, with all local assembly operations to be consolidated at Stellantis Malaysia's Gurun facility.

The first Kia model to roll off the Inokom production line was the Kia Carnival (KA4). To date, the plant also assembles the Kia Sportage (NQ5) and the facelifted Kia Carnival (KA4 PE).

Sime Darby Motors Sdn Bhd owns a controlling 51%, Sime Darby Hyundai Sdn Bhd a 5% interest, Hyundai Motor Company of South Korea a 15% interest, and Bermaz Auto Bhd (KL:BAUTO) a 29% stake.

Kia Malaysia previously operated in Malaysia through local distributor Bermaz Auto but has since shifted to a direct-to-market model under Kia Sales Malaysia Sdn Bhd. This follows Bermaz’s announcement in November last year that it would cease distributing Kia vehicles in the country. Kia Malaysia Sdn Bhd will manage the local assembly operations in Gurun.

Under a memorandum of understanding signed on Monday, Stellantis Malaysia will act as Kia’s contract assembler, undertaking CKD operations at its manufacturing facility in Gurun. The plant is capable of producing all current Kia models — including the Sportage and Carnival — as well as future models, with production slated to begin in the third quarter of this year.

The Stellantis facility, which has been operational since 2021, spans about 140 acres. It houses a main assembly plant, a two-storey office building, paint and body shops, an on-site test track, and dedicated vendor and supplier zones. The plant employs more than 400 trained personnel.

“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,” said Kia Malaysia and Kia Sales Malaysia president and chief executive officer Hyung Ho Kim in a statement.

Stellantis Asean managing director Isaac Yeo, meanwhile, said the group remains committed to supporting the broader automotive and manufacturing ecosystem through the continued development and utilisation of its Gurun facility while creating shared value for partners, suppliers, and the industry.  

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