South Korea's Hyundai Motor Company announced on Tuesday that it plans to invest nearly 0.48 billion US dollars in Malaysia over five years starting from 2025 to increase its production capacity in this Southeast Asian country.

Hyundai Motor stated that it plans to collaborate with local partner Inokom to expand the current assembly factory for the disassembly (CKD) of the previous generation Santa Fe SUV model.

The upgraded CKD factory will start producing Hyundai's multi-purpose vehicles and the Staria small van from the mid-2025. The company plans to expand its product lineup, including mid-size SUVs.

The company mentioned that the production scale will start at 0.02 million vehicles per year and then gradually increase.

The cars produced by the factory will not only be sold in Malaysia but also in other Southeast Asian countries.

Hyundai Motor also stated that it will support the development of Malaysia's electric car ecosystem, including expanding electric vehicle sales, constructing charging infrastructure, and establishing battery production facilities.

The company said: "Considering the increasing importance of the Southeast Asian and Malaysian markets, we have made this investment decision. Our goal is to contribute to the region's economic and social development by creating job opportunities and nurturing local talents."