KUALA LUMPUR: Hyundai Motor Co's RM2.16 billion investment in Malaysia will pave the way for more competitive prices on its vehicles, benefiting consumers in the country, according to Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Tengku Zafrul explained that this investment is expected to reduce costs, enabling Hyundai to offer its vehicles at more competitive prices in Malaysia while expanding its production capacity to cater to both domestic and export markets, Harian Metro reported.
He also welcomed Hyundai's plan to assemble six models, including HEV models, and establish an EV battery pack assembly plant in the second phase of its expansion.
He added that this initiative is a significant boost to Malaysia's automotive ecosystem, which accounts for about 4.0 per cent of the country's gross domestic product and employs over 700,000 people, positioning Malaysia as the second-largest automotive market in Southeast Asia.
"As such, Hyundai's additional investment paves the way towards strengthening Malaysia's role as a regional automotive hub, as envisaged by the New Industrial Master Plan 2030. Hyundai's continued commitment is also set to directly create hundreds of high-skilled, high-tech jobs for Malaysians, while creating valuable spillover impact and many more additional jobs to small and medium enterprises that support their operations."
Meanwhile, as part of its strategy, Hyundai plans to export 30 per cent of the vehicles produced in Malaysia to other Southeast Asian nations.
This strategic move will not only boost Malaysia's automotive industry but also contribute to regional economic growth, Hyundai said in a statement.
According to Hyundai, this investment forms part of Hyundai's broader initiative to capitalise on the increasing strategic importance of the Southeast Asian market.
With annual vehicle sales of around 750,000 units, it said Malaysia is one of the key markets for Hyundai in Southeast Asia.
"This investment in Malaysia complements Hyundai Motor's broader strategy within Southeast Africa, which includes a local sales station in Vietnam, an electric vehicle (EV) innovation centre in Singapore, an EV cell/pack plant in Indonesia, and a premium EV production and battery pack line," it said.
In collaboration with Hyundai Motor's long-standing partner, Inokom Corporation Sdn Bhd, in Kedah, Hyundai will see the start of local vehicle production in mid-2025, initially focusing on internal combustion engine (ICE) and hybrid vehicles.
"The local production will begin with the premium multipurpose van. The lineup will expand to include mid-to-large SUV and MPV models from the Hyundai and Genesis brands.
"Production will initially focus on ICE and hybrid models, gradually expanding to include EVs, aligning with Malaysia's sustainability goals. Vehicle production will cater to both Malaysian domestic and export markets," it said.