KUALA LUMPUR: Bermaz Auto Bhd
(BAuto) has mutually terminated the distribution agreement for the Deepal electric vehicle (EV) brand in Malaysia with China's Mobitech Co. Ltd.
In a filing with Bursa Malaysia, BAuto said its 85%-owned subsidiary, Bermaz Changan Sdn Bhd (BCSB), had entered into a termination agreement with Mobitech, a wholly owned subsidiary of Chongqing Changan Automobile Co. Ltd., with immediate effect.
BCSB was appointed the Malaysian distributor for Deepal EVs in November 2024 and was to distribute the vehicles, sell spare parts and provide after-sales services.
“BCSB had been negotiating with Changan Automobile on, among others, the EV models and the expected pricing to be retailed in Malaysia amidst the local market EV price war.
“However, after much negotiation, the parties concerned have decided not to pursue the Deepal distributorship and agreed to mutually terminate it with immediate effect,” BAuto said.
It noted that BCSB has yet to commence business operations since its incorporation in November 2024.
“The mutual termination of distributorship is not expected to have any material financial and operational impact on BAuto Group for the current financial year,” it said.
