Permaju Industries Bhd (PIB) has announced that its wholly owned subsidiary, Cergaz Autohaus Sdn Bhd (CASB), has been appointed by Chery Auto Malaysia Sdn Bhd (CAMSB) as an authorised dealer for Lepas vehicles in Malaysia.

In filings with Bursa Malaysia, Permaju stated that CASB had entered into a dealer agreement with CAMSB, a wholly owned subsidiary of Chery Automobile, to become a non-exclusive authorised dealer for the Lepas brand within an assigned market area. The appointment forms part of the establishment of the brand's retail operations ahead of its introduction to the Malaysian market.

Under the agreement, CASB is authorised to purchase and resell Lepas vehicles and identify itself as an authorised dealer of the brand. The agreement will take effect on July 8th, 2026, and remain valid until June 30th, 2028. The arrangement includes an option for renewal for a further two years, subject to approval by Chery Auto Malaysia.

CASB, which is principally engaged in the sale and distribution of new and used motor vehicles, as well as repair and maintenance services, is also required to fulfil several conditions under the agreement. These include establishing permanent dealership facilities and meeting the minimum paid-up capital requirement within three months of signing the agreement.

Permaju, whose core business includes the sale and distribution of motor vehicles and related services, stated that the appointment forms part of the group's plans to expand its automotive portfolio. The company added that the addition of the Lepas brand will complement CASB's existing automotive operations and allow the group to generate revenue from vehicle sales, after-sales services and spare parts. Permaju further stated that the dealer agreement enables the group to participate in the introduction of Lepas vehicles in Malaysia as an authorised dealer.

"The appointment is in line with the group's strategy to expand its vehicle portfolio and increase its involvement in the automotive sector," the company stated.

The company also stated that the board expects the appointment to contribute to the expansion of the group's dealership business. Permaju expects the agreement to contribute to the group's future earnings and net assets per share.

Permaju Industries' shares closed unchanged at one sen on July 6th, giving the company a market capitalisation of MYR 20 million (US$ 4.9 million).