Globalization has impacted the automotive industry in a major way, with automakers now benefitting from assembly plants and supply chains across the globe. Kia Philippines, which sources its models from either South Korea or China, will eventually have a third option in Malaysia.
The fourth-generation Kia Carnival in our market could be coming from Malaysia by next year
Automotive website paultan.org reports that the Philippines will be among the key export markets served when Kia Malaysia commences production of four vehicles: the Carnival MPV, Sportage compact crossover, Sorento midsize crossover, and Niro compact crossover.
During its media briefing last December 10, Kia said its Malaysian CKD operations will play a key role in its success within the ASEAN market. According to the carmaker, Malaysia’s favorable CKD policies and established logistics channels make the country ideal to roll out its CKD program.
Kia entered into a joint-venture partnership with Bermaz Auto (authorized distributor for Mazda in both Malaysia and the Philippines) to assemble vehicles. These will be both for domestic consumption and export to ASEAN from its Inokom plant in Kulim, Kedah.
We could also be taking delivery of the Kia Niro crossover in every powertrain flavor available
The automaker laid out a five-year timeline which will initially see 6,000 units for export in 2022. If Kia Malaysia sticks to its projections, the company will be exporting as much as 19,000 out of the planned 30,000 units produced annually by 2026.
Kia says that the four models planned for assembly in Malaysia will encompass both standard and hybrid versions. This will also include the Niro’s electric variant, which shares the powertrain configuration of the Hyundai Kona Electric.
The all-new Carnival coming to our market will likely come from Kia’s Malaysia facilities in time for the model’s launch next year. Meanwhile, the Philippine-spec Sorento will initially be brought over as a CBU unit from South Korea, which means that a scheduled refresh in 2024 might see Kia Philippines switching to Malaysia for subsequent stocks.
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