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Sime Darby has announced that its subsidiary Sime Darby Auto Italia (SDAI) is voluntarily relinquishing the Alfa Romeo distribution rights in Malaysia, according to a company report by AmResearch.

The report says SDAI will continue to provide after-sales service and honour its warranty commitments at its sole outlet at Jalan Ipoh, KL, until a new distributor is appointed by Alfa Romeo. SDAI has held Alfa distribution rights in Malaysia since 2005.

No reasons were given for the termination, but AmResearch reports that the Italian brand registered 38 imported CBU vehicles in Malaysia last year, and only 18 units through August this year, according to Malaysian Automotive Association data. In comparison, Sime Darby’s Motors division sold over 89,000 vehicles (representing a 10% year-on-year increase) for FY13.

Sime Darby Motors represents 30 automotive brands in 10 Asia Pacific markets in distribution, retail and assembly operations. China and Malaysia are its top two markets, which when combined, account for more than half of the sales volume. The Motors division is also the third-biggest profit contributor for FY13.