Hyundai subsidiary officially launches in Malaysian market

Hyundai Motor Company sees Southeast Asia as an important hub for the brand’s growth. In the Philippines, it’s been two years since Hyundai Motor Philippines was born as a subsidiary and distributor that’s directly controlled by the mothership in South Korea.

Over in Malaysia, Hyundai has now done the same and in a bigger scale. Apart from being a direct subsidiary for sales and distribution, the Malaysian operation will also take over local production at Inokom’s Kulim plant, where Hyundai has announced CKD production of internal combustion vehicles, as well as hybrids.

In the new entity’s first official event in Malaysia, it was announced that in the next five years the company will produce the likes of the fifth-generation Santa Fe, fourth-generation Tucson, and the Staria van. While majority of the output will be for the Malaysian market, 30% of its production will be earmarked for its neighboring countries in Southeast Asia.

Currently, the three aforementioned models are present in the Philippine market, but they are being sourced out from South Korea. This latest movement could be welcome news for both HMPH and Philippine buyers, as the three models could benefit from the ASEAN Free Trade Area.

The SRP of the models is one thing, but more importantly, HMPH could keep the prices of the hybrid Santa Fe and Tucson competitive even after the zero import tariff executive order expires after 2028.

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