It’s official – Berjaya Auto Alliance takes over Peugeot from Naza, Citroen dropped

Berjaya has confirmed that it will be taking over the Peugeot distributorship for Malaysia. The French brand will now be represented by a new company, Berjaya Auto Alliance Sdn Bhd (BAASB), which is 51 percent owned by Berjaya Corp Bhd and 20 percent by Bermaz Auto Bhd. The remaining stakeholders are not disclosed.

A joint statement with Groupe PSA, Berjaya Corporation, and Bermaz Auto released earlier today said that BAASB will be the sole distributor for Peugeot, while also gaining the rights to after-sales and spare parts of Peugeot, Citroen, as well DS brand vehicles.

This suggests that the Citroen and DS brand has exited Malaysia, but owners of the said vehicles will be able to get after-sales support from BAASB.

The first model to be launched by BAASB will be the Peugeot 2008. The model will most likely be assembled at the Naza Automotive Manufacturing plant in Gurun, now owned by Groupe PSA. The Gurun plant currently makes the Peugeot 3008 and 5008, both of which are exported to Thailand.

The Peugeot 2008 is a B-segment SUV. It competes against the Honda HR-V, Mazda CX-3, and of course, the Proton X50.

Mrs Laurence Noel, the Senior Vice President South East Asia Groupe PSA said, “Our product line-up of award-winning SUVs Peugeot 3008 and Peugeot 5008 has garnered a lot of attention here in the past few years, and as such we strive to continue the momentum through exciting new models and aftersales initiatives. It is our plan in the near future to introduce our global successes such as the all-new Peugeot 2008 in Malaysia. Further to that, we aim to continuously revolutionize the customer experience together with our new partner, BAASB and underscore our commitment to our customers through excellent sales and aftersales service. Groupe PSA has made Malaysia its export hub for the region.”

Dato’ Sri Robin Tan Yeong Ching, the Chief Executive Officer of Berjaya Corp said, “Berjaya is pleased to be given this opportunity to be part of the new collaboration (via BAASB) with Groupe PSA, one of Europe’s largest vehicle manufacturers, listed on the Euronext Paris Stock Exchange. This new collaboration will complement our Group’s existing automotive business namely, H.R. Owen Plc and Berjaya China Motor Sdn Bhd. We believe this collaboration between Berjaya Corp, Bermaz and Groupe PSA will bring positive synergistic benefits to all parties.”

Executive Chairman of Bermaz, Dato’ Sri Ben Yeoh said, “We are honoured that Groupe PSA and Berjaya Corp recognise Bermaz Group’s capabilities and expertise in the automobile industry and is delighted to participate in this new collaboration, which is expected to contribute positively to our future earnings base. Peugeot, Citroen and DS are European marque cars well-known for their driving comfort, smooth handling, modern designs, durability and with state-of-the-art technology. Hence, we are elated and looking forward to a successful collaboration with Berjaya Corp and Groupe PSA via BAASB.”

Previously, Peugeot was represented by Naza’s subsidiary Nasim Sdn. Bhd while Citroen and DS were represented by Naza Euro Motors.

As for Naza's other automotive subsidiary Naza Kia Malaysia, there is still no announcement for Kia. Bermaz Auto is tipped to be the front runner for the business but we understand that Bermaz Auto is not too keen on the business, for reasons which we have already highlighted here.

Unlike Peugeot, Kia is not willing to invest in Malaysia and Bermaz Auto sees little reason on why it should shoulder all the risk. Without local assembly, an import-only Kia product range has little market potential.

In the case of Peugeot, Groupe PSA is responsible for manufacturing the cars while BAASB is responsible for sales and after-sales.