Naza Group to Surrender Kia and Peugeot Distributorship

It is "believed" that Naza Group might be surrendering its Kia and Peugeot distributorship in Malaysia as reported by New Straits Times, with Bermaz Auto looking likely to assume control. The publication says that the decision was quickened by the soft automotive market due to COVID-19.

Sources told the publication that Bermaz Auto, which as of now handles the Mazda brand in Malaysia, has risen as the "frontrunner" to assume control over the South Korean and French marques, but at the same time is facing stiff competition from other interested parties including Sime Darby and Berjaya Group.

The change in distributorship will, in any case, require approval from the respective brands' principals, but the report expressed that Bermaz is set to take over specifically the Kia franchise "lock, stock, and barrel". Notwithstanding, it is not yet clear if the Naza Automotive Manufacturing plant in Gurun – which assembles Kia and Peugeot models – will be included for this arrangement, because of a past joint endeavour between Naza and Groupe PSA.

Further fueling the speculations, New Straits Times' sources additionally said that Naza Group has already sold its Kia branches to its dealers, and a former top executive from a major local fund has been tasked to dispose of the Kia franchise.

Rumours surrounding the Kia and Peugeot takeover began when Bermaz Auto CEO Datuk Francis Lee remarked on BFM's Breakfast Grille radio broadcast that the company was in progress to grow its franchise portfolio, however, halted barely shy of revealing the brand. Nonetheless, NST's sources commented that "Kia will (likely) come into BAuto [sic] first".

Other than Kia and Peugeot, Naza Group additionally holds the distributorship for Citroen, DS, Ferrari, Maserati, and Ducati, among others. Recently, Naza Group was likewise supposed to reintroduce the Suzuki brand in Malaysia, however, news on the development of that arrangement has cooled off.