Malaysian conglomerate Sime Darby today expressed optimism on securing a deal to assemble vehicles of South Korea's top automaker, Hyundai Motor for the Southeast Asian market.

Ahmad Zubair Murshid, Sime Darby Group's chief executive also said its automotive division will focus on its export market going forward, given the sluggish domestic market.

The group was in discussions with Hyundai on a possible strategic tie-up, under which the Sime Darby will assemble Hyundai-brand vehicles at its plant in northern Kulim, Kedah state for the Southeast Asian market, he told reporters after a shareholders meeting.

Sime Darby, which currently distributes BMW, Ford, Land Rover, Alfa Romeo and Hyundai cars, hopes to become the assembler of Hyundai and BMW cars in the Southeast Asian region.

It currently assembles Hyundai's ATOZ, Matrix and Getz for the local market.

Ahmad Zubair said the Kulim plant, in which the group has invested some RM30 million, has a production capacity of 30,000 vehicles per annum.

Ahmad Zubair said he hopes to seal the deal with Hyundai, adding that he believes the chances of securing it were good.

Once the group secures the Hyundai deal, it plans to expand the capacity of the Kulim plant to 120,000 vehicles.