I’m sure that by now you’ve seen Kia models being sold alongside Mazdas and Xpengs at certain Bermaz showrooms across Malaysia. This is because the company has hitherto held the distributorships for all three brands, and since it already has an extensive Mazda dealer network – and because some outlets are not able to justify the extra outlay of building a separate Kia showroom – the three otherwise unrelated brands are forced to sit alongside each other under one roof.
Of course, Bermaz isn’t the only company doing this. Stellantis Malaysia operates shared showrooms for Peugeot and Leapmotor, although these two companies are under the same umbrella, so that’s no surprise. Perhaps more contentious is Stellantis’ tie-up with Cycle & Carriage, with at least one outlet selling both Peugeots and Mercedes-Benzes. That can’t be good for either brand’s positioning.
Well, Kia has now taken over the distribution of its own brand under the Kia Sales Malaysia (KSM) banner, and the national sales company’s managing director Emily Lek has made it clear that the mixed-brand model will not be allowed under the new regime. This is despite her welcoming existing dealers to sign up and continue selling and servicing Kia models.
“It is quite clear in our agreement [with Bermaz] that Bermaz dealers will be taken out [of our network]. At the same time, we are also rationalising our network; there are some dealers that do want to stay with us, and of course we’ll be talking to them.
“Right now, Bermaz has shared branding [at its dealers] and that is something that we won’t allow, so it’s really about discussing with them on how they are going to rebrand if they want to maintain a Kia dealership,” she said.
Lek added that a principal-led model will enable the Kia brand to have full focus in terms of sales and aftersales efforts. “Like it or not, as an [outside] distributor, I can bring in multiple brands; I will focus on whichever car that makes me profitable. The brand loyalty [for a distributor] is very different, [compared to] a car company coming in by itself,” she said.
The clean break from Bermaz means that KSM isn’t following the arrangement made by sister company Hyundai Motor Malaysia (HMY), in which the previous distributor Sime Motors continues to be a major Hyundai dealer.
However, just like HMY, KSM will continue to assemble its CKD cars locally at the Inokom plant in Kulim, Kedah, through Kia Asia Pacific’s other subsidiary Kia Malaysia (KMSB). Either way, KSM will need to sort out its dealer network quick, as it will take over distributor duties starting January 1, 2026.
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well… to be honest… who cares anyway no one in malaysia is buying kia.
Kudos to you Ms Emily Lek. You have presented your philosophy well and bold with the standalone concept. I myself is driving a Kia Sportage for 5 years now. You can fully concentrate on your before and after sales services. Of course your pricing must maintain competitive as the market is flooded with so many new comers. I believe what stands out is the kind of service you provide – poor/average/good or outstanding from the office to the workshop. This is what the market lacks in most business field. If you can conquer this mindset I believe in no time Kia will join the ranks of the others standalone ones. Good Luck and All the Best
Ya can’t fight jepunis numba uno Masuda, oops confused?!! more luxurious brand than luxurious premium lexus lol
Even if Kia is a stand alone brand distributorship ,makes no difference.
Fanboys have migrated to cheaper Chinese cars,whether ICE or EVs.
Hyundai also is just a “showroom vehicle”.
You can keep changing the CEO…it just wont click.
It will just be in the same league as Tan Chong.
erm, credit to them at least their offerings are way better spec-ed than what tan chong has to offer for nissan line ups
at least tanchong smart enough to start selling Wuling and GAC as their backup plan
Well said…the damage is long done…very difficult to change perception dy…good luck. Price wise also not appealing.
Potential KIA customer walk into showroom, ended up booking a mazda instead..lol
Selling korean car in malaysia at high price is really an uphill battle…..
People bought previously because of lower price. After that, Korea cars thought that they are on par with Japan cars and increase the selling price. Do not tell me Korea cars are popular in Europe. Here is Malaysia.
Good move to avoid further destruction by Bermaz. Better to take a chance by yourself than to let it continue spiral downwards under greedy BAuto.
In order for Kia to.be successful in Malaysia is by being successful in ASEAN. Export CKD Malaysia Kia cars to neighbouring countries and enjoy AFTA 0% tariff, including making LHD cars to the Philiphines Vietnam Myanmar.
The higher the volume, the lower you could sell the cars.
Back in year 2001 NazaKia introduced CBU Karens 1.8 at 110k and not long after that rebadged the same car as Naza Citra with 2.0 CVVT engine but below 90k. Together with Naza Ria and Kia Spectra, the brand sales shot sky high to the extend that HQ in Korea decided to open south east asia office in KL.
10 years ago though we saw how the brand was killed by Naza itself by selling Optima and Cerato at almost same level as Toyota Corolla/Camry and Honda Civic/Accord. Which path you want to choose?
Going CKD is correct but a higher volume will be the bonus you’re looking for.
Only allow one company to sell multiple brands in same building but not same showroom. Example, divide the building by half with each brand going its own corporate image way, facade and even lighting specifications.
Even better if they have a building with 4 separate corners and walls and can sell 4 different brands next to each other.
I remember what Millenium Welt did to Peugoet some 10 years ago – it had both Mazda and Puegoet dealership next to each other and also the BMW showroom. It told Peugoet, your cars cannot sell. Take your dealership back. Simple as that.
Same thing I believe happened to Persada Auto kicking out Ford dealership and replacing with Mazda.
All of you saying the brand has no future… they have been here in Malaysia since the late 20th century. No, they have not ripped up the traditional sales charts, but they have survived.
Nobody gave them a chance against the Japs back then. And yet here they are some 20 years later still soldiering on.
True, times have changed and the Middle Kingdom have come to challenge and make a bid to rule the roost. Now, the Koreans as well as the Japanese have to change. And the reality? The Japanese being the default non-national leaders have more to be worried about.
Yeah right…the direction will make sense if they are selling in high numbers and at least retaining that numbers.
Mazda Malaysia might still have the chance to redeem themselves by doing the same. Leave this sad of excuse of a distributor, bermaz
If I run a kia sc, it’s time for me to jump ship to BYD. Kia is already a dead brand. Same like suzuki and mazda.
Bermaz… BerKia?