Hyundai goes direct in Malaysia with new local entity, CKD production starts 2025

KUALA LUMPUR: In a momentous move, Hyundai is stepping up its game in Malaysia. The Korean carmaker has officially set up Hyundai Motor Malaysia (HMY), marking a major shift from its previous distributor-led model under Sime Motors to a new, direct principal-led structure.

This move means Hyundai is now taking full control of its brand presence in Malaysia—from marketing and sales to customer experience.

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With a new headquarters set up at Menara Affin TRX in Kuala Lumpur, HMY is laying down serious groundwork to establish itself not just as a car brand, but as a key player in the local automotive scene.

“This isn’t just a new chapter — it’s a long-term commitment to Malaysia as a strategic hub in ASEAN,” said Eric Lee, President of Hyundai Motor Malaysia.

Local production and new models on the horizon

To match its bigger role here, Hyundai will kick things off by launching three new models in the SUV and MPV segments. Local assembly is also on the cards, with production set to begin in the third quarter of 2025 at Inokom’s facility in Kedah.

Within five years, Hyundai plans to produce up to seven models locally, including ICE and hybrid electric vehicles.

About 30% of these Malaysia-assembled vehicles are slated for export to neighbouring countries, further strengthening Malaysia’s role as a regional production hub.

Jobs, dealers, and growth

With its local expansion, Hyundai is building a team that’s expected to hit 100 employees by the end of this year. It’s also developing a stronger nationwide dealer network, with plans to grow to 25 outlets by 2030.

On the aftersales front, Hyundai is investing in service upgrades and digital integration to make customer ownership a lot smoother.

Jahabarnisa Haja Mohideen, Managing Director of HMY, sees great potential here:

“Malaysia boasts the highest passenger vehicle demand in ASEAN at 35%, with a steady GDP growth of 4.3% signalling strong consumer confidence.”

Not leaving anyone behind

Even with this big transition, Hyundai isn’t cutting ties with Sime Motors entirely. The long-time partner will remain part of the dealership network, handling sales and aftersales support to ensure continuity for current Hyundai owners.

“We remain committed to supporting Hyundai’s operations — ensuring a seamless experience for existing and future customers,” said Jeffrey Gan, Managing Director of Sime Motors, Southeast Asia.

Hyundai has had a presence in Malaysia since the early 2000s and officially partnered with Sime Motors in 2004. Over the years, its model lineup has spanned everything from the Elantra and Sonata to SUVs like the Tucson, Santa Fe, and Palisade—and more recently, EVs like the IONIQ 5 and IONIQ 5 N. Cumulatively, Hyundai has sold over 147,000 vehicles in Malaysia.

Website and contact update

As part of the rebranding, Hyundai is refreshing its website and social media channels. Current owners are encouraged to update their contact details [via this link> to ensure they continue receiving service reminders, campaign updates, and other support from the new HMY team.

Hyundai is now running its own show in Malaysia through Hyundai Motor Malaysia. Expect new SUVs and MPVs, local assembly starting in 2025, expanded service networks, and stronger regional presence—all while keeping existing customers supported through Sime Motors.

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