Quick look
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Kia shifts to a direct, principal-led business model for Malaysian market after 30 years.
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Strategy focuses on implementing global standards, rebuilding the dealer network, and repositioning the product line-up.
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Product line-up unchanged for now, with local assembly to continue with certain models.
Kia, the ninth largest automaker in the global auto industry, has been in Malaysia since the 1990s. Over the past 30 years, it has had ups and downs, changing distributorship from NAZA, which brought the brand in and developed it, to Bermaz Auto, which took over when NAZA decided to chart a new course in its automotive business. Cycle & Carriage Bintang was also involved in the brand at one point.
Now the automaker has decided, like Hyundai Motor which is in the same group, to come in and directly manage its business in Malaysia. It’s not unusual for an automaker to do so, and is common in the evolution of a brand in the market. Initially, when the volume is small, the automaker leaves it to a local partner to handle the business. Then when it reaches a certain volume large enough to justify the automaker coming in and running the show, the local partner’s services end.
For this reason, many local companies limit their investment in the business. They are, after all, not the brand owners, and it is almost likely that at some point in the future, their principal will want to take control. It’s happened with so many companies but that’s how the business evolves.
So in order to put in greater effort and to build the brand further with more investment, the brand owner – the automaker – has to come in, and that’s what Kia is doing. It is setting up what is known as a National Sales Company, a subsidiary which will handle all aspects of the business. This was not possible before the late 1990s due to government policies, but that changed to allow foreign automakers ownership of their subsidiaries.
Kia has never really been away, so the line about ‘returning to the market’ isn’t quite right. It has never been away but the automaker understands that there has been skepticism about the brand. It has good, well engineered products but when asked to consider the brand, Malaysians do ask ‘Why Kia?’. It is this question that Kia Sales Malaysia Sdn Bhd (KSM), the new company, will be working hard to answer.
Under the new direct principal-led business model effective from January 1, 2026, KSM is in the driver’s seat to fully lead the brand’s presence, marketing, sales, ownership experience and training across Malaysia.
“Globally, Kia is the 9th largest automotive manufacturer in the world. Our target is to grow at a sustainable pace for the long term. For us, it’s not so much about being the fastest growing brand; rather, it’s more about being a brand that cares about our customers, our dealers, and the Malaysian automotive segment,” said Kia Sales Malaysia Sdn Bhd President & CEO, Hyung Ho Kim.
Three pillars
Three key pillars will provide guidance as Kia looks to refresh the market’s perception and experience of the brand. These pillars start with introducing global standards of operations, setting a solid foundation for brand growth. The brand will also focus on a compelling brand and marketing strategy which boldly reframes scepticism by giving people a reason to choose Kia.
Secondly, KSM intends to rebuild its dealer network to go beyond hardware and infrastructure. It is guided by a clear goal of providing peace of mind to customers, ensuring every touchpoint embodies the true Kia experience.
The third and final pillar will be KSM’s approach to repositioning its product line-up. KSM affirms that it will focus on the best products, hand-picked and equipped to suit the needs of the Malaysian market.
Product line-up
At this time, KSM has not mentioned any new products to join the existing range which has both ICE and EV models. Whether it will increase focus on EVs is uncertain since it will not enjoy duty-exemption unless it assembles locally. The Hyundai Motor Group has an EV production facility in Jurong, Singapore but from what we heard, that operation (which was making only Hyundai models) has been suspended.
Since 2000, Kia’s cumulative sales volume in Malaysia has been almost 122,000 units (JPJ data up to October 2025), with its best years in the early 2000s. In 2021, when Bermaz took over the brand, Kia Malaysia (a joint venture between Kia and Bermaz for manufacturing in Malaysia) said it had a cumulative production target of 100,000 units between 2022 and 2026, with a portion being exported regionally. That’s probably changed now with KSM coming in and a new forward plan would be formulated.
While Kia has not managed its business directly until now, Kia Asia Pacific (APAC) has been overseeing regional business for many years, serving as the thinktank of the Asia region. Kia APAC oversees six subsidiaries which now includes Kia Sales Malaysia (KSM) and Kia Malaysia, the manufacturing arm.
Better for customers
It is usually better for customers when the automaker is present in the market. Not only is it closer to the customers but it also has a better understanding of market conditions and issues, and can be more responsive. Aftersales matters can also receive faster attention, rather than having long channels of communication between the dealer and the distributor which has to deal with the factory.
All current owners need not worry about aftersales and warranty support during this transition period. Authorised Kia dealers will still provide the support and warranties will be honoured as per conditions at time of vehicle purchase. If you need assistance, you can contact Kia Sales Malaysia at 1300 88 0133 or email customersupport@kia-my.com. It would be a good idea to register your contact details with them as they might not have possession of the owner database from the previous distributor due to privacy regulations.
“It is an extremely exciting time for us right now as we re-enter the Malaysian market as a stand-alone entity. No longer represented by a distributor, the brand is now led by the principal with full control over our voice, values and vision. With strong systems and a clear plan in place, we are ready to bring back the true Kia brand experience,” said Kia Sales Malaysia Sdn Bhd Managing Director, Emily Lek.
Many will recognise Ms Lek, who was instrumental in launching the JAECOO brand in Malaysia over the past year and building it to a high ranking within a short time. Her experience includes a long stint at Mercedes-Benz Malaysia where she was involved in different business operations.
