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April 6, 2021

Kia to Start Assembling in Malaysia for ASEAN Markets

Hand-in-hand with the acquisition of exclusive distributor rights in Malaysia, Bermaz Auto has entered into a joint-venture with Kia to start building the Korean automaker’s vehicles for the ASEAN market.

The joint-venture, officially called Kia Malaysia Sdn Bhd (KMSB) is owned 66.7 percent by Kia, and will increase Kia’s manufacturing presence in ASEAN. Analysts, in an article with New Straight Times say Malaysia will serve as the automaker’s regional vehicle manufacturing hub for markets including the Philippines.

Plans are underway to produce three models in Malaysia; two have been confirmed to be the all-new Carnival and Seltos. KMSB will produce these vehicles at the Inokom plant in Kulim, Kedah, where Mazda vehicles such as the CX-5 and CX-8 are currently assembled.

Bermaz Auto has a 29 percent equity share in the Inokom plant.

Aside from being the exclusive distributor of Mazda vehicles in both Malaysia and the Philippines, Bermaz Auto has recently acquired the distributorship of Peugeot in Malaysia as well.

Bermaz Auto said that CKD assembly could start in 12 to 18 months’ time.

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