Stellantis Malaysia will assemble Kia vehicles at its Gurun plant in Kedah under a new contract assembly deal, with production due to start in the third quarter of 2026.
The two companies signed a memorandum of understanding today. Under the deal, Stellantis Malaysia will take over Kia’s local completely knocked-down (CKD) assembly operations.
The Gurun plant can handle several model types and powertrains. For Kia, that would include current models such as the Sportage and Carnival, as well as future models planned for Malaysia.
For Stellantis, the agreement brings another contract assembly job to Gurun. The plant has previously assembled Peugeot models and recently started local assembly of Leapmotor electric vehicles.
The facility covers about 140 acres and houses an assembly plant, office building, paint and body shops, an on-site test track, and areas for vendors and suppliers.
Gurun is not new to Kia-linked vehicles. Naza Automotive Manufacturing began operations there in 2004, with early output including the Naza Ria and other Kia-related models.
PSA Group acquired a 56% majority stake in the plant in 2018, making it the French group’s first Asean manufacturing hub. Stellantis, formed from the merger of PSA and Fiat Chrysler Automobiles, later took full ownership of the Gurun operation in late 2021.
For Kia Malaysia, the move ends a five-year CKD arrangement with Sime Darby Motors’ Inokom plant in Kulim, Kedah, where the Carnival and Sportage have been assembled.
Kia’s local assembly operations remain in Kedah, but shift to a Gurun plant that Stellantis is turning into a broader production site for several brands.
