Hyundai’s Landmark RM 2.16 Billion Investment in Malaysia: A Game Changer for the Automotive Industry
The South Korean automotive, Hyundai Motor Company (HMC), is set to launch a new wave of investments in Malaysia. According to Bernama, the company plans to establish its first production plant in Malaysia next year, with a total investment of RM 2.16 billion. This move marks a significant milestone for Hyundai in the Malaysian market.
Malaysia’s Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, has described this as the largest investment by a South Korean automaker in Malaysia, expected to create numerous local job opportunities. He further revealed, "HMC’s investment will make Hyundai vehicles in the Malaysian market more competitive. We’ve requested that HMC incorporate local components in their production. This approach will allow them to manufacture vehicles at more competitive prices."
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The new plant in Kulim is expected to begin production by mid-2025, focusing on internal combustion engine (ICE) and hybrid models over the next five years. Although the timeline for electric vehicle (EV) production remains unspecified, it has been included in Hyundai’s long-term plans. This investment breathes new life into Malaysia’s automotive sector. Currently, Kulim already serves as a key production base for Hyundai in Malaysia, with the Inokom plant there assembling Hyundai models since the early 2000s.
Prime Minister Anwar Ibrahim’s visit to South Korea not only aims to strengthen economic and trade ties but also highlights Malaysia’s commitment to attracting international investment. Closed-door discussions with HMC were a critical part of this visit. Tengku Zafrul emphasized that the government would support Hyundai’s investment through favorable policies, including localization requirements for the supply chain.
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The construction of this new factory is expected to reshape the Korean car market in Malaysia, further boosting consumer interest in Korean-made vehicles. Analysts predict this significant investment will bring multiple benefits to Malaysia’s automotive industry, including technology transfer, increased employment opportunities, and solidifying Malaysia’s position as a regional automotive production hub.
Hyundai’s strategic approach spans from producing ICE and hybrid vehicles to potentially manufacturing EVs in the future. This RM 2.16 billion investment is not merely an economic move but a deliberate effort to expand Hyundai’s footprint in Southeast Asia. The project marks a significant milestone for Korean automakers in Malaysia. With the new plant and the introduction of seven upcoming models, Hyundai is set to redefine its position in the Malaysian market. Notably, about 15 years ago, Hyundai was one of the top five brands locally, thanks to its robust product lineup. Interestingly, this new investment is directly from Hyundai, without involvement from its current distributor, Sime Darby.
What are your thoughts on this development?
Malaysia’s Minister of Investment, Trade, and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, has described this as the largest investment by a South Korean automaker in Malaysia, expected to create numerous local job opportunities. He further revealed, "HMC’s investment will make Hyundai vehicles in the Malaysian market more competitive. We’ve requested that HMC incorporate local components in their production. This approach will allow them to manufacture vehicles at more competitive prices."
The new plant in Kulim is expected to begin production by mid-2025, focusing on internal combustion engine (ICE) and hybrid models over the next five years. Although the timeline for electric vehicle (EV) production remains unspecified, it has been included in Hyundai’s long-term plans. This investment breathes new life into Malaysia’s automotive sector. Currently, Kulim already serves as a key production base for Hyundai in Malaysia, with the Inokom plant there assembling Hyundai models since the early 2000s.
Prime Minister Anwar Ibrahim’s visit to South Korea not only aims to strengthen economic and trade ties but also highlights Malaysia’s commitment to attracting international investment. Closed-door discussions with HMC were a critical part of this visit. Tengku Zafrul emphasized that the government would support Hyundai’s investment through favorable policies, including localization requirements for the supply chain.
The construction of this new factory is expected to reshape the Korean car market in Malaysia, further boosting consumer interest in Korean-made vehicles. Analysts predict this significant investment will bring multiple benefits to Malaysia’s automotive industry, including technology transfer, increased employment opportunities, and solidifying Malaysia’s position as a regional automotive production hub.
Hyundai’s strategic approach spans from producing ICE and hybrid vehicles to potentially manufacturing EVs in the future. This RM 2.16 billion investment is not merely an economic move but a deliberate effort to expand Hyundai’s footprint in Southeast Asia. The project marks a significant milestone for Korean automakers in Malaysia. With the new plant and the introduction of seven upcoming models, Hyundai is set to redefine its position in the Malaysian market. Notably, about 15 years ago, Hyundai was one of the top five brands locally, thanks to its robust product lineup. Interestingly, this new investment is directly from Hyundai, without involvement from its current distributor, Sime Darby.
What are your thoughts on this development?
28 Nov 2024
