Genesis To Be Assembled In Kulim?

Hyundai Motor Co. is making its largest financial commitment in Malaysia to date, with a RM2.16 billion investment to establish its first manufacturing facility in collaboration with long-standing partner Inokom Corporation Sdn Bhd.

The plant, as per our recent report, will be located in Kulim, Kedah, and is slated to begin operations in 2025. Over the next five years, the facility will manufacture seven car models.

What's interesting are the details shared by MITI Minister Tengku Zafrul who highlighted that the production will kick off with a premium MPV model. This move is expected to lower its price, making the model more accessible to Malaysian consumers.

He also revealed that Hyundai’s local production lineup will expand to include mid-to-large SUVs and MPVs from both the Hyundai and Genesis brands. This marks the anticipated entry of Genesis, Hyundai’s luxury division that’s often likened to Lexus, into the Malaysian market.

Initially, production will focus on internal combustion engine (ICE) and hybrid models, with plans to gradually incorporate electric vehicles (EVs). Hyundai also plans to export 30% of the vehicles produced in Malaysia to other Southeast Asian countries, contributing to regional economic growth.

In the second phase of the assembly plant's expansion, Hyundai intends to introduce six additional models, including hybrid electric vehicles (HEVs), and establish a facility for assembling EV battery packs.

Zafrul further noted that these investments align with the New Industrial Master Plan 2030, positioning Malaysia as a regional automotive hub. It will also serve to enhance Malaysia's standing as Southeast Asia's second-largest automotive market, with annual vehicle sales of approximately 750,000 units employing over 700,000 workers.

Hyundai’s strategic efforts complement its broader Southeast Asia plans, which include an EV innovation centre in Singapore, a battery manufacturing facility in Indonesia, and an EV production line in Vietnam. These developments reinforce Hyundai’s vision of expanding its presence and fostering sustainable growth across the region.