KUALA LUMPUR: Kia Motors Corporation and Bermaz Auto Bhd (BAuto) have formed a strategic partnership to drive the expansion of production of Kia vehicles in Malaysia.
The partnership allows both entities to incorporate a new company, Kia Malaysia Sdn Bhd to undertake the assembly of completely knocked down (CKD) Kia vehicles here.
Kia and BAuto said three models were planned under the joint venture for the Malaysian market.
The first two models - Kia Seltos and Kia Carnival - are expected to be produced locally under the new set up, while the third model will be determined at a later stage.
Kia plans to make Kia Malaysia the regional manufacturing hub for Kia brand in Asean countries and other potential markets.
The South Korean marquee has also appointed BAuto's subsidiary Dinamikjaya Motors Sdn Bhd as the new distributor of Kia vehicles in Malaysia.
Kia said it had recognised the vast potential the market would bring and found it timely to raise the bar to progressively tap into its potential.
As the new distributor, Dinamikjaya holds the right to distribute and sell Kia vehicles, CKD and completely built up (CBU), sale of genuine parts as well as in the provision of after-sales service and to build Kia's brand reputation and awareness in Malaysia.
Kia Asia Pacific president and chief executive officer Tae Hun Lee said after months of searching for the right partner, Kia was delighted to enter into the partnership with BAuto.
"With BAuto's proven capability in successfully building up automotive marques in Malaysia and the Philippines as well as their automotive manufacturing experience, we believe we have placed the Kia brand in good hands under the capable leadership of its executive chairman Datuk Seri Ben Yeoh," he said in a statement today.
Tae said BAuto was a renowned public listed automotive company in Malaysia with a strong management team and good track record.
Yeoh said Kia vehicles were well-known for their stylish looks, packed with smart features, frequent facelifts and new launches that keep prospective buyers excited over its products.
"The partnership will complement our existing automotive businesses and we look forward to a successful collaboration with Kia," added Yeoh.