Deepal Malaysia Distribution Agreement Ends as Bermaz Auto Terminates Partnership

The Deepal Malaysia Distribution Agreement officially came to an end after Bermaz Auto Berhad announced that its 85%-owned subsidiary, Bermaz Changan Sdn Bhd (BCSB), and Mobitech Co Ltd mutually agreed to terminate their distribution arrangement. The agreement covered the distribution of Deepal-branded electric vehicles, spare parts, and after-sales services in Malaysia. According to the announcement made on June 26, 2026, the termination takes immediate effect following discussions between both parties regarding the future of the partnership.

Distribution Partnership Ends Before Commercial Launch

BCSB was appointed as the official distributor of Deepal-branded electric vehicles in Malaysia in November 2024. However, despite the appointment, the planned distributorship never progressed to commercial operations. Bermaz Auto stated that both companies decided not to move forward after negotiations involving the range of vehicle models and proposed retail pricing failed to reach a mutually acceptable outcome. The challenging competitive environment within Malaysia's electric vehicle market, particularly the ongoing EV price war, also influenced the decision to discontinue the planned business collaboration.

Negotiations Influenced by Local EV Market Conditions

The discussions between the parties primarily focused on selecting suitable vehicle models for the Malaysian market and determining competitive retail pricing. As pricing pressure continued across the country's rapidly evolving electric vehicle sector, both companies concluded that proceeding with the distributorship would not be commercially viable under the prevailing market conditions. The mutual termination allows both organizations to discontinue the agreement without moving into the operational phase while maintaining an amicable business relationship.

Operational and Financial Impact on Bermaz Auto

Bermaz Auto clarified that Bermaz Changan Sdn Bhd has not commenced any business activities since its incorporation in November 2024. As a result, the termination of the distribution agreement is not expected to create any material financial or operational impact on the Bermaz Auto Group during the current financial year. Since no commercial operations had begun, the company indicated that the decision will have minimal effect on its overall business performance and ongoing operations.

Key Timeline

The following table summarizes the major events related to the distribution agreement.

Frequently Asked Questions

Why was the Deepal distribution agreement terminated in Malaysia?
The agreement was ended after both parties mutually decided not to proceed following negotiations on vehicle models and retail pricing amid Malaysia's competitive electric vehicle market. Bermaz Auto explained that discussions regarding suitable vehicle offerings and pricing did not result in an arrangement acceptable to both companies. With increasing pricing pressure in the local EV sector, both organizations agreed to terminate the distributorship before commercial operations began, making the decision effective immediately.

Did the termination affect Bermaz Auto's financial performance?
Bermaz Auto stated that the termination is not expected to have a material financial or operational impact because its subsidiary had not started business operations before the agreement ended. Bermaz Changan Sdn Bhd remained inactive since its incorporation in November 2024, meaning no commercial activities related to the Deepal distributorship had commenced. Consequently, the company does not anticipate any significant effect on the group's current financial year's operations or overall performance.