South Korean automaker Hyundai Motor has established its new subsidiary headquarters in Kuala Lumpur, Malaysia. The new local entity, Hyundai Motor Malaysia (HMY), marks its direct entry into the Malaysian market.
The company has moved from a distributor-led model with Sime Motors to a principal-led operational strategy. This change emphasises improved customer engagement with a focus on innovation and long-term growth.
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HMY will oversee brand, marketing, sales, and customer experience by establishing a dedicated local team. This team will enable quicker, market-driven decisions and foster a more customer-centric approach. The new subsidiary is expanding its team to build a strong nationwide dealer network with plans to grow its workforce to 100 employees by the end of the year.
HMY will launch three new models in the SUV and MPV segments. It also plans to set up local assembly operations in Kedah by Q3 2025. This facility aims to produce up to seven car models over five years.
Initially, the expansion will focus on assembling internal combustion engines and hybrid electric vehicles. As production ramps up, it will export approximately 30% of locally assembled vehicles to neighbouring markets.
HMY also plans to enhance its dealer and after-sales network by modernising showrooms and improving digital integration. Additionally, it will upgrade its service network, with plans to expand to 25 outlets by 2030.
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By GlobalDataEric Lee, president of Hyundai Motor Malaysia, stated that the local establishment aims to bring the strength and agility of the brand ‘closer to home.’
Jahabarnisa Haja Mohideen, managing director of Hyundai Motor Malaysia, remarked that the country is full of untapped potential.
“It boasts the highest passenger vehicle demand in ASEAN at 35%, with a steady GDP growth of 4.3%, signalling strong consumer confidence and rising spending power,” he added.
Since 2024, Hyundai Motor has announced investments in the US, Germany, India, and Brazil, among others.
