Kia has a new manufacturer in South East Asia

Bermaz Auto, the company behind Mazda Philippines, has just signed an agreement with the Kia Corporation to assemble and sell its vehicles. Completely Knocked Down (CKD) kits will be imported from South Korea to be sent to Bermaz Auto for assembly in Malaysia. The joint venture will be called Kia Malaysia. 

It was stated that Bermaz Auto will be contributing to one of its assembly plants, while Kia will use the remaining equity in the venture to invest in manufacturing infrastructure for the southeast Asian country. 

The Kia Carnival, and the Kia Seltos are slated for production in Malaysiya, with the Carnival being first in line. The South Korean minivan is expected to hit production floors in Malaysia later this year, in the 4th quarter of 2021. The Seltos subcompact crossover, meanwhile, will be next.

It is unknown whether the Carnival to be produced in Malaysia by Bermaz Auto will be an all-new model. Currently, the Carnival is still in its previous generation and the South Korean brand has officially unveiled the next-generation minivan to the world. 

What’s more exciting is that the Kia Seltos will also be a part of the production line. The subcompact crossover is currently made and assembled in South Korea, and a manufacturing facility in the ASEAN region could help the prices go down. That all depends on Kia Philippines, however, if sourcing vehicles from Malaysia will be a feasible option in the future.