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.
