KUALA LUMPUR (Nov 23): Bermaz Auto Bhd said it will return distributorship of the Peugeot brand to its owner Stellantis NV, following Stellantis’ decision to establish its own national sales company (NSC) in Malaysia.

Bermaz has been distributing Peugeot vehicles in Malaysia since December 2020 through its 55%-owned unit Bermaz Auto Alliance Sdn Bhd, with the current distribution agreement expiring at the end of November.

Stellantis, Bermaz said, intends to “directly manage the sales and distribution of Stellantis vehicles as well as the introduction of other Stellantis marques in Malaysia and the Asean region”, with plans to establish an NSC within 1Q2024.

“The change in business strategy is part of Stellantis' growth ambitions in the Asean region, in line with its electrification plans and the company’s global Dare Forward 2030 strategy,” Bermaz and Stellantis said in a joint statement.

“During the transition period, Bermaz Auto Alliance will continue to work with Stellantis for vehicle sales through its own network and to ensure that there are no disruptions in vehicle service, parts, warranty and after-sales service to its Peugeot customers,” Bermaz said.

“The non-renewal of the distribution agreement is not expected to have any material financial and operational impact on the Bermaz Auto group for the current financial year,” it added.

According to Bermaz’s annual report, its Peugeot operations in Malaysia saw profit before tax (PBT) of RM9.7 million in the financial year ended April 30, 2023 (FY2023), up 142.5% from RM4 million in FY2022, as revenue rose 84.97% to RM301.5 million, from RM163 million.

This represented around 8.5% of Bermaz’ FY2023 group top line of RM3.54 billion and 2.3% of group PBT of RM423.3 million.

Bermaz also distributes Mazda vehicles through its 30%-owned Mazda Malaysia Sdn Bhd and Kia vehicles through a 33.33%-owned Kia Malaysia Sdn Bhd.

The group sold 19,688 vehicles in Malaysia in FY2023, up 47% from 13,362 in FY2022. It also distributes vehicles in the Philippines, with 1,682 units sold there in FY2023.

Stellantis’ new direction in Asean includes upping its electrification ambitions, as it evaluates the potential of the Gurun plant in Kedah as a regional manufacturing hub to manufacture battery electric vehicles (BEVs) for both domestic and export markets in the region, while driving consumer adoption of BEVs in Asean.

Other brands under the Stellantis group include Fiat, Citroen, Jeep and Vauxhall.

At 10.30am, Bermaz’s share price traded one sen or 0.4% lower to RM2.45, giving it a market capitalisation of RM2.87 billion.