According to media reports, Hyundai announced on November 26 that it plans to invest $479 million in Malaysia over the next five years to increase the production capacity of its local plant.
Hyundai intends to collaborate with Malaysian company Inokom to produce the Staria MPV, a multi-purpose vehicle. The initial annual production target for the Staria MPV is set at 20,000 units, with plans to increase this figure over time. In addition to ramping up Staria MPV production, Hyundai plans to start manufacturing mid- to large-sized SUVs and MPVs under both the Hyundai and Genesis brands. These vehicles will be marketed in Malaysia and other Southeast Asian countries.
Hyundai also stated its commitment to supporting Malaysia's electric vehicle (EV) ecosystem, including expanding EV sales, building charging infrastructure, and establishing battery production facilities.
Initially, however, Hyundai will focus on internal combustion engine (ICE) vehicles and hybrid models in the Malaysian market. Nonetheless, in response to Malaysia's growing clean energy policies, the company plans to transition toward EVs.
Hyundai's strategy in Malaysia differs from its approach in other countries. In August, the company confirmed a $30 million investment in Thailand to establish a dedicated EV assembly plant for its IONIQ series. Unlike the Malaysian plant, the Thai facility will begin production immediately.
Currently, Hyundai's share of the global EV market is steadily increasing. Earlier this year, the company launched the largest initial public offering (IPO) in India's history. It is also considering further investments in Indonesia.
