In a filing with Bursa Malaysia today, Bermaz Auto said Kia Corporation, the brand owner and principal manufacturer of Kia vehicles, has decided to reorganise its distribution network in the country.

Bermaz Auto said its 65%-owned subsidiary Dinamikjaya Motors Sdn Bhd had previously entered into distributorship, service, warranty, and other ancillary agreements with Kia and its 66.67%-owned unit Kia Malaysia Sdn Bhd.

It said the agreements covered the distribution, after-sales services and supply of spare parts for Kia vehicles in Malaysia, and were originally set to expire between 2026 and 2027, depending on their respective execution dates.

The termination of the Kia agreements takes immediate effect, but Dinamikjaya will continue to work with Kia, based on mutually agreed cut-off dates, to ensure a smooth transition and minimise any interruption to vehicle servicing, parts supply, warranty claims and after-sales support for Kia customers in Malaysia.

Bermaz Auto also said the cessation of its role as a Kia distributor is not expected to have any material financial and operational impact on the Bermaz group for the current financial year.