Hyundai Motor said on Tuesday it plans to invest nearly $480 million in Malaysia over the next five years from 2025 to increase its production capacity in the Southeast Asian nation.
The South Korean automaker said it plans to collaborate with its local partner Inokom to augment its complete knockdown (CKD) unit assembly plant, which currently manufactures the older-generation Santa Fe SUV model.
The upgraded CKD plant will begin manufacturing Hyundai's multipurpose vehicle and the Staria minivan in mid-2025. The company plans to expand the lineup to include mid-to-large SUVs, reports Yonhap news agency.
The company said the production scale will initially start at 20,000 units per annum and gradually increase.
Vehicles produced at the plant are expected to be sold not only in Malaysia but also in other Southeast Asian countries.
Hyundai has also expressed its commitment to supporting the development of the electric vehicle ecosystem in Malaysia, including the expansion of EV sales, the construction of charging infrastructure and the establishment of battery production facilities.
"We made this investment decision considering the growing importance of Southeast Asia and the Malaysian market," Hyundai said. "We aim to contribute to the economic and social development of the region through job creation and local talent development."
Meanwhile, Hyundai Motor Group's chief Euisun Chung has spoken about the possibility of collaboration with Japan's Toyota Motor in areas involving hydrogen-powered mobility.
Chung, executive chair of Hyundai Motor, said, "(Hyundai and Toyota) are discussing hydrogen and trying to collaborate well together."
Chung made the remark while meeting with reporters at the 2024 World Rally Championship (WRC) at Toyota Stadium in Aichi Prefecture, Japan.
Hyundai currently sells a passenger hydrogen fuel cell electric vehicle (FCEV) model, named the Nexo, and has recently unveiled a new FCEV concept model, named the Initium.
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