Hyundai Motor Plans To Invest 480 Million: Hyundai Motor said on Tuesday it plans to invest nearly 480 million dollar in Malaysia over the next 5 years from 2025 to increase its production capacity in the Southeast Asian nation.
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Hyundai Motor Plans To Invest 480 Million
Hyundai motor said the collaborate to the local partners 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.
Hyundai Motor Plans To Invest 480 Million Factory Location
The factory will be located in Kulim, a region in northern Malaysia, and is expected to begin production by mid-2025.
Initially, the facility will focus on producing internal combustion engine and hybrid models. Electric vehicles are part of Hyundai’s long-term plans.
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, according to the media report
How Many Unit Produce In The Year?
The company said the production scale will initially start at 20,000 units per year 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.
Hyundai Motor Plans To Invest 480 Million: The Aim of Hyundai
“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.”
The automaker reiterated its dedication to advancing Malaysia’s electric vehicle (EV) ecosystem. This includes increasing EV sales, developing charging infrastructure, and exploring the establishment of battery production facilities, marking a significant step in regional sustainability efforts.
Hyundai Motor Plans To Invest 480 Million: Chief Euisun Chung Said
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 Nexon, and has recently unveiled a new FCEV concept model, named the Initium.
Hyundai Motor Plans To Invest Around USD 480 Million in Malaysia To Increase Its Production Capacity in Southeast Asian Nationhttps://t.co/fW5Bnjy5Xv#Hyundai #HyundaiMotor #SouthAsia @Hyundai_Global
— LatestLY (@latestly) November 26, 2024
Government perspective about this investment
Malaysia’s Minister of Investment, Trade and Industry Tengku Zafrul Aziz expressed optimism about the investment.
He emphasized that Hyundai’s entry would significantly improve the price competitiveness of its models in Malaysia.
The announcement coincided with the visit of Malaysian Prime Minister Anwar Ibrahim to South Korea.
Above deal is direct challenge for Japan
Hyundai’s expansion into Malaysia is seen as a direct challenge to Japanese automakers, who have long held dominance in the local market.
Despite being a significant player globally, Hyundai has struggled to gain attention in Malaysia, selling just 1,507 units in the year 2023 it is only 0.2%in Hyundai global selling.
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