Kia plans to make Malaysia regional manufacturing hub after BAuto tie-up
KUALA LUMPUR: Kia Motors Corporation plans to set up its regional manufacturing hub in Malaysia as it recognises the country’s vast potential, said Kia Asia Pacific president and chief executive officer Ted Lee.
The South Korean carmaker found it timely to raise the bar to progressively tap Malaysia’s potential, said Lee at the signing of a joint venture agreement with Bermaz Auto Bhd (BAuto) to form Kia Malaysia Sdn Bhd yesterday.
For a start, Kia Malaysia will undertake the assembly of three complete knocked-down (CKD) Kia vehicles.
The first two — Kia Seltos and Kia Carnival — are expected to be produced locally over the next 12 to 18 months.
The third model will be determined at a later stage.
Kia is the second-largest carmaker in South Korea and, together with parent Hyundai Motor Group, is the world’s fifth largest automotive manufacturer.
On the potential investment into the CKD operation, BAuto executive chairman Datuk Seri Ben Yeoh said it would spend US$20 million to set up the production line.
He also said Kia Malaysia would help address after sales issues faced by Kia owners under the previous distributor.
To this end, Kia has appointed BAuto’s subsidiary, Dinamikjaya Motors Sdn Bhd, as its new distributor in Malaysia.
Dinamikjaya holds the right to distribute and sell Kia vehicles as well as genuine parts in Malaysia.
Elaborating on the partnership, Lee said Kia had chosen BAuto after months of searching for the right partner.
“With BAuto’s proven capability in building up automotive marques in Malaysia and the Philippines, as well as its automotive manufacturing experience, we believe that we have
placed the Kia brand in good hands.”
Yeoh said Kia vehicles were well-known for their stylish looks and frequent facelifts.
“The partnership will complement our existing automotive businesses and we look forward to a successful collaboration with Kia,” he added.