Hyundai's 670 Billion KRW Investment Bombshell! Is the Southeast Asia Takeover Beginning?

Hyundai's Mega Investment in Malaysia Targets Southeast Asia Market

Hyundai Motor Company has announced its largest-ever investment of 670 billion KRW in the Malaysian market, signaling a bold move to capture the Southeast Asian automotive market. This five-year investment, running from 2025 to 2030, is expected to become a major milestone in Hyundai's ASEAN expansion strategy. The company is now launching an ambitious plan to dramatically boost its current market share of just 0.2%.

What Will the 670 Billion KRW Mega Investment Change?

Hyundai announced it will invest a total of 2.159 billion MYR (about 673.5 billion KRW) in Malaysia from 2025 to 2030. This investment is being carried out in collaboration with local partner Inokom, in which Hyundai holds a 15% stake, ensuring a more stable partnership.

The core of this investment is the expansion of the CKD (Completely Knocked Down) production facility in Kulim, Malaysia. While this plant currently only produces the old Santa Fe, it will soon manufacture a variety of SUVs and MPVs, including the Staria.

Expanding the Lineup: From Staria to Genesis

Production Phase	Model	Annual Output	Features
Phase 1 (Mid-2025)	Staria MPV	20,000 units	ICE/Hybrid
Phase 2	Mid/Large SUVs & MPVs	To be expanded	Hyundai + Genesis
Phase 3 (Long-term)	EV Lineup	Policy-linked	Eco-friendly policy response

About 30% of the vehicles produced will be exported to other Southeast Asian countries, making Malaysia a key export hub for Hyundai in the region. This is a strategic move that goes beyond just targeting the local market.

Why Is the Malaysian Car Market Attracting Attention?

Since Q3 2024, Malaysia has overtaken Thailand as the second-largest car market in Southeast Asia. The market has grown to 750,000 units per year, an 11% increase from the previous year.

Current Malaysian Market Share

• Local brands (Perodua + Proton) 60%
• Toyota 13%
• Honda 10%
• Hyundai + Kia 0.2% (Needs improvement)

Hyundai and Kia's market share is only 0.2%, but this also means there is huge growth potential. Industry insiders note that as the market, once dominated by Japanese brands, diversifies, global brands are finding new opportunities.

Organizational Restructuring and Localization Strategy

In April 2025, Hyundai replaced the head of marketing at its Malaysian subsidiary. The new marketing chief, Ahmad Nashami, has experience at local company Proton and is expected to implement tailored strategies based on his deep understanding of the local market.

This localization strategy goes beyond personnel changes, expanding local parts sourcing, nurturing local talent, and building charging infrastructure to create a comprehensive ecosystem.

Building an EV Ecosystem for the Future

Hyundai is also actively working to build an EV ecosystem in Malaysia. The company plans to expand EV sales, construct charging infrastructure, and establish battery production facilities to secure its position in the future mobility market.

Initially, Hyundai will focus on internal combustion and hybrid vehicles, but plans to gradually increase the proportion of EVs in line with Malaysia's eco-friendly policies. The Ioniq 5 has already received a positive response in Malaysia, suggesting Hyundai can be competitive in the EV market as well.

A Strategic Hub for All of Southeast Asia

Hyundai's investment in Malaysia is more than just a move into a single country's market. Having already built ASEAN's first complete vehicle plant in Indonesia, Hyundai is now establishing Malaysia as its second key base to target the entire Southeast Asian market.

The ASEAN market is massive, with a total population of 670 million and an economy worth $3.6 trillion. With a young average age and the development of mobility platforms like Grab, demand for cars is expected to keep rising.

Hyundai's ASEAN Production Network

• Indonesia: Complete vehicle plant + battery plant
• Malaysia: CKD assembly plant (new investment)
• Existing bases in Vietnam, Thailand, Pakistan

Outlook and Expected Impact

Will Hyundai's investment in Malaysia succeed? Industry experts are optimistic. The market, once dominated by Japanese brands, is opening up to more consumer choices, and Hyundai's quality and design are gaining recognition locally.

For example, the Staria sold over 200 units within a month of its 2022 Malaysian launch, receiving positive feedback for its price competitiveness and practicality. If local production further improves pricing, even better results are expected.

Hyundai's promise of job creation and local talent development is also expected to strengthen its partnership with the Malaysian government. Prime Minister Anwar Ibrahim's visit to Korea and meetings with Hyundai executives played a major role in making this investment a reality.

Key Points of Hyundai's Malaysia Investment

670 billion KRW investment → Local production expansion → Southeast Asia export hub → EV ecosystem development → Rapid market share growth expected

Hyundai's investment in Malaysia is likely to be a game changer that could reshape the Southeast Asian automotive market. It will be interesting to see what results Hyundai achieves in Malaysia and how this will impact the entire Southeast Asian market.