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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] Hyundai Motor Company plans to invest approximately ₩680 billion (21.59 billion Malaysian ringgit) in Malaysia over the next six years, targeting annual production of over 20,000 vehicles locally.
According to the automotive industry on the 26th, Hyundai will collaborate with its local partner, Inokom, to commence contract assembly (CKD) of the Staria multi-purpose vehicle (MPV) by mid-2024. CKD involves exporting vehicles in parts for local assembly and sale. Hyundai holds a 15% stake in Inokom.
The production volume will start at 20,000 units per year, with plans for gradual expansion. The lineup will include mid-to-large SUVs and MPVs from both Hyundai and Genesis. Initially focusing on internal combustion engine and hybrid vehicles, Hyundai aims to align with Malaysia's eco-friendly policies by transitioning to electric vehicle (EV) production.
Vehicles produced in Malaysia will cater to the domestic market and be exported to other Southeast Asian countries, comprising roughly 30% of the production. Hyundai also plans to support Malaysia's EV ecosystem by expanding EV sales, building charging infrastructure, and establishing battery manufacturing facilities.
Hyundai’s increased investment reflects Malaysia's strong growth trajectory. According to the ASEAN Automotive Federation, Malaysia surpassed Thailand as Southeast Asia's second-largest automotive market from the third quarter of 2023, holding a 23.9% market share in ASEAN. Indonesia remains the leader with a 29.9% share.
The region’s expanding automotive market, driven by rising income levels, is another key factor. The ASEAN automotive market grew by over 20% in 2022, with 3.35 million units sold compared to 2.79 million in 2021. With ASEAN's population of 700 million, GDP of $3.6 trillion, and an average age of 30, the automotive sector is poised for continued rapid expansion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
