Malaysia’s automotive industry continues to strengthen its position in the regional manufacturing landscape, with Inokom Corporation Sdn Bhd emerging as one of the country’s leading contract vehicle assemblers.
Operating from a 200-acre facility in Kulim, Kedah, within the Northern Corridor Economic Region (NCER), Inokom has spent nearly three decades building a reputation for quality automotive assembly. Today, the company serves as a key pillar of Sime Darby Berhad’s (Sime) Motors division and assembles vehicles for seven global automotive brands across Europe and Asia.
The facility currently produces vehicles for German marques BMW, MINI and Porsche, Japanese automaker Mazda, South Korean brand Hyundai, and Chinese manufacturer Chery. In addition, it serves both the Malaysian market and selected ASEAN export destinations.
Production Growth Highlights Malaysia’s Automotive Capabilities
Inokom’s manufacturing operations span body shops, paint shops, assembly shops and centralised warehousing facilities. Supporting these operations is a workforce of more than 2,700 skilled Malaysian employees.
The company has also recorded strong production growth in recent years. Annual output increased from 20,500 units in 2021 to more than 31,800 units in 2025. During the same period, Inokom exported over 24,500 vehicles to regional markets, strengthening its position as one of Malaysia’s largest automotive exporters.
According to Sime Darby Group Chief Executive Officer Dato’ Jeffri Salim Davidson, Inokom demonstrates the strength of Malaysian industrial capabilities and manufacturing expertise.
“Inokom is a testament to what Malaysian industry is capable of achieving. It continues to uphold the trust of world-leading automotive marques, and this speaks volumes about the depth of capability we have built here in Malaysia,” he said.
He added that the company’s achievements align closely with the Government’s GEAR-uP agenda, which aims to strengthen high-value manufacturing and industrial competitiveness through local expertise and capabilities.
Long-Term Partnerships with Global Automotive Brands
A key factor behind Inokom’s growth has been its ability to secure and maintain long-term partnerships with international automotive manufacturers.
Its collaboration with Hyundai dates back to 1993. Subsequently, the facility expanded into commercial and passenger vehicle assembly in 2000, beginning with the Inokom Lorimas (Hyundai Porter) and later the Inokom Atos in 2002.
Meanwhile, Mazda remains one of Inokom’s longest-standing assembly partners and an important joint venture collaborator. In 2011, the facility assembled its first locally produced Mazda 3, making it the only completely knocked-down (CKD) Mazda assembly plant in ASEAN at that time.
More recently, Porsche selected Inokom in 2021 as its first vehicle assembly facility outside Europe. The move marked a significant milestone for Malaysia’s automotive manufacturing sector and reflected confidence in local production standards. Furthermore, Porsche expanded its local assembly programme in 2024 to include exports to Thailand.
Chery joined Inokom’s growing portfolio in 2023. Through the partnership, the facility assembles several models, including the Omoda and Tiggo series. Notably, the Chery Omoda E5 became Inokom’s first electric vehicle (EV) assembly programme, supporting the company’s entry into electrified vehicle production.
BMW Manufacturing and Engine Assembly Strengthen Regional Position
Inokom also plays a significant role within BMW Group’s regional manufacturing network.
The company hosts a dedicated Engine Assembly Plant for BMW Group, which supplies engines directly to BMW’s local vehicle assembly operations. Established through a partnership with Sime Darby in 2003, the engine assembly facility has operated at Inokom since 2009.
Today, it ranks as the third-largest BMW engine assembly plant globally.
Since 2018, BMW Group has exported more than 11,800 BMW and MINI vehicles assembled at Inokom to Thailand and the Philippines. Additionally, BMW celebrated the production of its 100,000th locally assembled vehicle at the facility in 2022.
Earlier this year, the BMW i5 eDrive40 M Sport assembled at Inokom became the first fully electric BMW model assembled in the Asia-Pacific region.
Plant-within-a-Plant Concept Supports Multiple Brands
One of Inokom’s key differentiators is its Plant-within-a-Plant operating model.
Under this approach, each automotive brand operates on dedicated assembly lines designed to meet specific technical requirements and quality standards. As a result, the facility can support multiple global manufacturers while maintaining individual production processes and quality control systems.
Moreover, Inokom maintains internationally recognised certifications covering quality management, workplace safety and environmental standards.
The company has also received several industry accolades. These include the Industry Excellence Award from the Ministry of Investment, Trade and Industry (MITI) in 2018, the High Productivity Enterprise Using Local Workers Award from the Malaysia Productivity Corporation in 2019, and the Kedah State Appreciation Award in 2026.
Supporting Local Vendors and Workforce Development
Beyond vehicle assembly, Inokom continues to contribute to Malaysia’s broader automotive ecosystem.
The company works with approximately 370 local vendors, including Bumiputera enterprises, creating opportunities for Malaysian suppliers to participate in global automotive supply chains. This effort supports the Government’s objective of strengthening local industry participation through the GEAR-uP agenda.
At the same time, Inokom invests heavily in workforce development. Its training programmes cover advanced automotive manufacturing technologies, leadership development, electrical systems, diagnostics, technical upskilling and quality compliance.
These initiatives help ensure the company maintains a highly skilled workforce capable of supporting evolving automotive technologies and production requirements.
Preparing for the Future of Automotive Manufacturing
As the automotive industry undergoes rapid transformation driven by electrification, digitalisation and changing consumer expectations, Inokom continues to expand its capabilities.
“The automotive landscape is changing rapidly, with new technologies, emerging markets and evolving expectations,” said Dato’ Jeffri.
“We are committed to ensuring that Inokom stays ahead of the curve by continuously investing in our people, raising our standards and expanding our capabilities.”
Looking ahead, the company aims to strengthen its position as a preferred automotive assembly partner within ASEAN. To support this ambition, Inokom plans to launch a new advanced painting facility that will further enhance production capacity and operational efficiency.
As Malaysia continues to position itself as a regional manufacturing hub, Inokom’s combination of global partnerships, local talent development and export capabilities highlights the growing role of Malaysian automotive manufacturing in regional and international markets.
