Three years after Hyundai Motor Company took direct control of its Philippine operations, they’re doing the same over in neighboring Malaysia. The move will have global implications as the Korean automaker is lining up Malaysia to join its global assembly footprint.

In a statement, Hyundai believes its shift from a distributor-led model under Sime Motors to a principal-led approach is underpinned by its deeper market commitment, enhanced customer engagement, and renewed focus on innovation and long-term growth.

As part of Hyundai Motor Malaysia (HMY)’s plans, it will boost assembly operations in Kedah in northwest Malaysia.

The investment, worth some USD 479.2 million, will have an annual capacity of 20,000 units including both internal combustion and hybrid models. Hyundai will produce a mix of SUVs and MPVs, particularly of “high-specification” vehicles. Production is set to begin in the third quarter of 2025 and the first product is said to be the Staria.

Moving forward, this joint-venture with Inokom Corporation Sdn. Bhd., will produce up to seven car models within the next five years with plans to export 30 percent of the vehicles assembled there to other Southeast Asian countries, likely including the Philippines.