Tag Archives: CKD program

NEWS

CKD Program: Kia Malaysia and Stellantis Malaysia announce strategic collaboration

Kia Malaysia has signed a Memorandum of Understanding (MoU) with Stellantis Malaysia to support local assembly operations (CKD) in Malaysia.

This also marks a significant achievement in Kia’s long-term localization and manufacturing strategy in the region.

Stellantis Malaysia as Contract Assembler

Under this collaboration, Stellantis Malaysia will act as the contract assembler for Kia’s CKD operations at its facility in Gurun, Kedah.

The facility is equipped with comprehensive production infrastructure and manufacturing capabilities that comply with the latest ISO 9001 Quality Management System (QMS) standards.

It will also support the assembly of a variety of models across different powertrain types.

As a result, it will accommodate the production of all current Kia models, including the Sportage and Carnival, as well as new models in the future.

The CKD operations are scheduled to commence in the third quarter (Q3) of 2026.

Strengthening Kia’s Position in Malaysia

This collaboration is expected to strengthen Kia’s manufacturing ecosystem in Malaysia while enhancing operational flexibility, scalability, and readiness to introduce new models.

This development signifies the next phase in the brand’s growth in Malaysia and the broader ASEAN market.

It also reinforces Kia’s long-term commitment to regional development and expansion.

Hyung Ho Kim, President and Chief Executive Officer of Kia Malaysia and Kia Sales Malaysia, remarked that this collaboration is crucial for strengthening Kia’s position in Malaysia.

Isaac Yeo, Managing Director of ASEAN Stellantis, added that the company remains committed to supporting a broader automotive and manufacturing ecosystem while creating shared value for partners, suppliers, and the industry.

EV, NEWS

Stellantis invests RM24 million in CKD plan for Leapmotor EV in Gurun

Leapmotor and Stellantis recently announced an initiative for a local assembly program (CKD) for Leapmotor vehicles in Malaysia.

With an initial investment of 5 million euros (RM24 million), this initiative is set to transform Stellantis’ plant in Gurun, Kedah, into a primary assembly hub for the ASEAN region.

This strategic move positions Malaysia further ahead in the industrialization of electric vehicles (EVs) in the region.

Additionally, by introducing advanced and accessible Leapmotor EVs, Stellantis aims to bring high-tech mobility solutions to Southeast Asia.

According to Stellantis India & Asia Pacific Chief Operating Officer Ashwani Muppasani, the Gurun plant was selected due to its strategic location and mature infrastructure, which will enable more efficient production and smooth distribution to other ASEAN markets.

This aligns with Stellantis’s framework of “Built in ASEAN for ASEAN.”

Meanwhile, Stellantis ASEAN Managing Director Isaac Yeo stated that the local assembly program for the Leapmotor model will commence at the end of 2025, starting with the Leapmotor C10 EV.

In addition to the Leapmotor C10 EV, Leapmotor also plans to expand the CKD program to include other models such as the C10 REEV and the compact SUV B10.