This article first appeared in The Edge Malaysia Weekly on October 19, 2026 - October 25, 2026

The Dongfeng Motor Corporation electric vehicle (EV) franchise in Malaysia is up for grabs, with at least three parties understood to be vying for its distribution and import rights from next year.

The three bidders are Sunway Bhd (KL:SUNWAY), Singapore-based Volt Auto Pte Ltd, and Central Auto Distributors Bhd (CADB) — a unit of the Malay Vehicle Importers and Traders Association of Malaysia (Pekema) — via a joint venture with companies under the Berjaya group and Naza Corp Sdn Bhd.

Another potential bidder for the Dongfeng franchise is said to be online used car outfit, Carro, but this could not be ascertained at press time.

“The three — Sunway, VAM (Volt Auto Malaysia Sdn Bhd, which is wholly owned by Volt Auto) and CADB with the Berjaya and Naza groups — have thrown their hats into the ring,” a source says, adding, “Carro could be a potential bidder according to industry players.”

It is noteworthy that all three bidders have existing business ties with Dongfeng, the smallest of China’s “Big Four” state-owned car makers.

CADB held the Dongfeng EV franchise in Malaysia from 2024 but early this year, Dongfeng brought Volt Auto, its exclusive authorised distributor in Singapore, into the picture to work with CADB on the distribution of Dongfeng EV vehicles in Malaysia.

CADB, nevertheless, remains the franchise’s approved permit (AP) holder for Dongfeng cars in Malaysia.

Sunway, meanwhile, has been the distributor of Dongfeng’s commercial trucks for Malaysia since 2021.

Volt Auto is understood to have received assistance from Carro in its operations in Malaysia after as many as 400 Dongfeng vehicles imported by the company this year were stuck at Malaysian ports over unpaid import and excise duties, according to sources.

“The vehicles started piling up at the port from March, with the outstanding duties estimated at RM15,000 per car,” says a source.

The import duty on completely built-up (CBU) vehicles from China stands at 5% while excise duty is 10%. Duties and taxes must be settled with the Royal Malaysian Customs Department before imported vehicles can clear customs and be released for registration. Tax exemptions for CBU EVs ended in 2025.

Based on the estimated RM15,000 in duties per vehicle, the customs bill for all 400 units would amount to around RM6 million, excluding sales tax, storage-related penalties and charges imposed by the port operator and logistics providers.

Another source says 250 of the imported units have since been cleared while the remaining 150 are still at the port.

Records on Companies Commission Malaysia’s website show that VAM was incorporated in September last year with a share capital of just RM5 million. Its financial statements were not available for review.

“It’s not common for cars to be stuck in a port like this … actually it is unheard of. You need to get the cars out of the port to generate revenue. If you don’t do that you have nothing to sell,” says an industry player, aware of the happenings at VAM.

About 400 Dongfeng cars were sold in Malaysia last year, mostly through CADB, it is understood.

The contest comes as Malaysia tightens the requirements for imported CBU EVs, making local assembly a significant factor for prospective distributors.

“The question is no longer just who can sell the cars, but who can get a completely knocked down (CKD) plant up and running. That will be a key factor in this round of bidding,” a source familiar with the matter tells The Edge on the basis of anonymity due to the subject’s sensitivity.

Established in 1981, Pekema represents bumiputera-owned companies involved in the vehicle trade, particularly the importation of foreign cars. The association has 411 member companies, according to its website.

Volt Auto, meanwhile, was founded in Singapore by 28-year-old entrepreneur Soh Ming as Dongfeng’s authorised distributor in the city state. Soh entered the automotive sector in 2021 with Icon Cars, a social media-driven car dealership that he sold in 2023 before starting Volt Auto.

Soh did not respond to questions from The Edge. CADB as well declined to comment on the import issue and the bidding it is understood to be participating in. However, sources familiar with CADB say its top brass were in China last week looking to secure the distributorship.

CADB, which was incorporated in May 2005, posted a loss after tax of RM6.97 million on revenue of RM12.34 million for the financial year ended Dec 31, 2025. It had total assets of RM18.08 million and total liabilities of RM24.83 million at end-2025.

The need for local assembly for a viable Dongfeng distributorship comes with Malaysia’s new requirements for fully imported EVs. Since July this year, imported CBU EVs are required to have a minimum cost, insurance and freight value of RM200,000, as well as a minimum power output of 180kW (245hp).

Dongfeng has three EV models in Malaysia: the Box urban EV, the 007 sedan and the Vigo sport utility vehicle (SUV). The Box was launched in November 2024 while the 007 and Vigo followed in February this year.

The models fall into the category of affordable EVs, ranging from around RM100,000 to RM200,000 — price points that are at odds with the shift in policy on imported EVs earlier this year.

According to media reports, Volt Auto’s CKD local assembly is in the works, which, according to Soh, was expected to commence between 2026 and the first quarter of 2027. No further details of the plans were publicly disclosed.

CADB, meanwhile, is banking on the Berjaya group for its Dongfeng CKD ambitions. Berjaya Assets Bhd (KL:BJASSET) operates a plant in Tampoi, Johor, which already has CKD operations for Chinese EV outfit Chery. CADB is looking to leverage the facility in its bid for the full Dongfeng franchise in Malaysia — imports and distribution, according to a source.

With local assembly emerging as a key consideration in the race for the franchise, the outcome could hinge on which bidder can offer Dongfeng a credible route to maintaining its presence in Malaysia’s more affordable EV segment.

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