Bermaz Auto (BAuto) has abandoned its plans to introduce Deepal electric vehicles in Malaysia, terminating its distribution agreement with the Chinese brand before the venture commenced operations.

In a filing with Bursa Malaysia, the company stated that its 85%-owned subsidiary, Bermaz Changan Sdn Bhd (BCSB), entered into a termination agreement with Mobitech, a wholly owned subsidiary of Chongqing Changan Automobile, on June 26th, 2026. The agreement mutually ended the arrangement with immediate effect.

BCSB was established by BAuto in November 2024 specifically to manage the Deepal business, including vehicle distribution, spare parts, and after-sales services.

According to the company, the subsidiary did not commence operations during the approximately 19 months since its incorporation. It currently has an issued share capital of MYR 100 (US$ 25), comprising 100 ordinary shares, of which BAuto holds an 85% stake.

BAuto stated that the two parties had been engaged in discussions on several aspects of the business, including the EV models to be introduced and their expected retail pricing. However, they ultimately decided not to proceed due to the ongoing price competition in the local EV market. The distribution rights had originally been granted by Mobitech, which manages the export of Changan Group vehicles and spare parts.

When the agreement was first announced, the Deepal S05 compact SUV and S07 mid-size SUV were identified as the initial models planned for the Malaysian market, with imports expected to arrive as completely built-up (CBU) units from Changan's manufacturing facility in Rayong, Thailand. Those plans have now been discontinued.

The board stated that the mutual termination is in the best interests of the BAuto Group and added that it is not expected to have any material financial or operational impact on the group during the current financial year, given that BCSB had not commenced commercial operations. The Malaysian EV market has seen the introduction of a growing number of Chinese models across different price segments. BAuto cited ongoing price competition in the market as a factor in its decision not to proceed with the Deepal venture.

Following Deepal's exit, XPeng remains BAuto's only dedicated EV brand, distributed through the 85%-owned Bermaz XPeng. Deepal is also the latest brand to be removed from the group's portfolio, following BAuto's decisions to discontinue its Kia operations in 2025 and Peugeot operations in 2024.

Apart from XPeng, BAuto's core business continues to be the assembly and sale of Mazda vehicles in Malaysia.