Stellantis and Malaysia. It all started in late 2021 when the giant auto group – the result of the Fiat Chrysler Automobiles and Groupe PSA merger – secured full ownership of Naza Automotive Manufacturing (NAM) and its manufacturing plant in Gurun, Kedah.
It was hailed as a major milestone for the company in our region, and Stellantis planned to ‘invest and dramatically expand its footprint as part of a robust localisation strategy’ in Malaysia to leverage its new asset. In late 2023, Stellantis took over sales and distribution of Peugeot vehicles from Bermaz with a new national sales company (NSC).
Stellantis Malaysia started operations in March 2024 and the new entity launched the Peugeot 408 the following month, promising 30 dealers by the end of 2024. Signing up household name Cycle & Carriage was notable, but one might argue that with the principal directly managing both production and operations in the country, Stellantis should have a larger presence in the market.
The group’s main brand in Malaysia has always been Peugeot, but as we learned from a chat with Stellantis ASEAN MD Isaac Yeo, the lion brand from France will take a back seat for the time being, making way for Chinese brand Leapmotor to spearhead the search for volume.
Last year, Stellantis and Leapmotor announced the formation of a joint venture (Leapmotor International, 51:49 led by Stellantis) following the group’s 2023 investment of around 1.5 billion euros for a 21% stake in Leapmotor.
Basically, with this new JV, Stellantis will be bringing Leapmotor products to the world. Leapmotor’s cars are ‘focused on the volume-centric segments at competitive price’, giving Stellantis something else to sell, something it does not currently have in its portfolio.
This applies to Malaysia too. What Peugeot does not have, Leapmotor has. “Complexity is our strength. Different brands will give you different products at different times. Every three to five years (there’s a) new model change, new generation change. As that happens, when I have different brands at different price positioning, it allows me to position myself strongly at different times,” Yeo told paultan.org.
The Stellantis regional chief says that Peugeot is going through a generational change now, admitting that the brand does not have the right products at the right price for our fast-changing market, which of late has been swamped by Chinese brands offering more kit for the money, altering our judgement when it comes to ‘value’.
“We’re going through a generational change now at Peugeot. This current generation of products used to be selling at RM150k to RM180k, it has now come down. Why? Because it’s an older generation, and there’s new competitors with new specs (for Malaysia), so naturally we have to evolve.
“But my new products that will be launched in Europe, the cost basis is a bit high. I’m trying to bring the cost basis down, CKD in Malaysia like what we still do, and that will take a bit of time. And that’s why I’m coming in with Leapmotor,” Yeo said, reiterating that Stellantis will be investing five million euros (RM24.5 million) into the Gurun plant to prepare it for semi-knocked down (SKD) Leapmotor production, which will start with the C10 EV by the end of this year.
“It’s one of the strongest upcoming brands in China. Today, the market in Malaysia is being strongly affected by Chinese brands – price, positioning, product, specs. In the past, when we see an auto tailgate or electric seats, that’s not basic, that’s something I want and I’m going to pay for it. Today, it’s different, it’s a basic standard feature – your want has become a basic need. And this is what Chinese products bring to us,” he illustrated.
“And that’s why strategically we went in with Leapmotor. Because cost basis, product wise – today the C10 is selling at RM125k – it’s a very strong value for money proposition. This is where we see European manufacturers playing catch-up, but we have Leapmotor in our arsenal, which I can in a certain way, keep up with the market demand. I cannot catch-up so quick, but I can keep them within sight,” Yeo said of Leapmotor.
The forthright ASEAN boss made it very clear that Leapmotor will be Stellantis’ top striker for now, the player to ‘lead the line’ and get the goals that will keep the company in the game (all football terms are our own words). But beyond the immediate future, Peugeot is still very much in the group’s ASEAN plans; in fact, Stellantis is working on models that will suit our region better, both in product and cost-wise.
“We’re now rebuilding the whole product lineup for Peugeot, we’re now moving towards the next generation. This year, we’re still selling the 3008 and some of the older models; we’ll most probably push this car at a very competitive price. We’ll come back soon with the next generation. But it’s going to take me a bit of time, because I’m using European costing coming down into ASEAN,” Yeo said, declining to share a timeline.
He admits that Peugeot’s cost structure is too high for the cars to be competitive in today’s market, and scaling down, for now, is the right option. “If I’m not there (the right product-price), I’m not going to force it. It’s painful but we will need to slow down,” he said. To solve this cost issue, Stellantis is working on ASEAN sourcing and to increase supply of local parts “to be relevant again”.
Yeo used the word ‘relevant’ many times in our hour-long interview and one gets the sense that for Stellantis Malaysia, the main goal now is to stay in the game, with hopes resting on the shoulders of their new Chinese striker. “We use Leapmotor to stay relevant in the market,” Yeo declared.
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Get your pricing right for Leapmotor. Slashing RM35k off the price of a car you launched less than 6 months ago just kills your customers so they will never return and tell everyone about it.
Feel bad for the early adopters of this brand, suddenly newer batch got better specs and more competitive pricing. Sure tells a lot about their sales team poor foresight in anticipating Malaysia EV market.
Feel bad for the early adopters of this brand, newer batch got better pricing and spec. Sure tells a lot of their sales team poor foresight of Malaysia EV market when they came up the the initial pricing.
What a joke
Having more than a dozen brands under your roof but nothing suitable for malaysian market that you have to sell Chinese cars to compensate?
That means the whole of stellantis is utterly irrelevant to malaysian automotive market.
“Complexity is our strength”
Strength taik kucing
Dozens of brand with so many models but not even 1 car suitable for Malaysian market? Something sold in Brazil or Australia not suitable for malaysia? Make it make sense.
Looks like Stellantis leadership doesn’t have the clue how to stay “relevant” in Malaysia, and is just buying time till they can play catch up… By the time they catch up, the chinese OEMS have again move to a new level, and Stellantis gonna be irrelevant still.
Wad happen last time talk about Citroen want to reintroduce here wit affordable price.. Suddenly so quiet. Last time had so many big plans for msia but all gone quiet
I can see this guy dont know how 2 manage Pijot, that’s why not relevant. As an owner myself, i bought my 408 with free servis 5 years, and suddenly now they remove it and drop price … My resale value gonna lah like that!! Initially me,my gang all see confident in Stellantis in here, lead the brand, we happy and wilingly to pay for tis car even slightly higher price becos have good value for the money with 5 yr free servis, extend warranty 7yr. Now, they bastard the brand name with throw price like Chinese brands.. Niamahhh. Stupid Stellantis!!
lol buying a peugeot with resale value in mind as one of the priority. this is one of the worst RV brands ever in malaysian history with its prince ep6dt engine , second only to VW DSG and dieselgate. tow truck drivers favorite.
A relevant model like 208 is nowhere to be seen. Go back to wherever la.
Mid 2024 the salesman told me Stellantis plans to reintroduce Citroen, Jeep and possibly Alfa Romeo
Now already 1 year on and nothing.
Dumb ass leader. Does he even know that Peugeot is s PREMIUM brand… Not supposed to fight with chinese brands… If like that say, then BMW and Merc should also bungkus and focus sell China car. Bodoh!!
Oh dear…. will leapmotor sell? Will theu be able to compete with other china brands in the market? Looks like the French even this guy has some ego in the brand. Its as good as exiting the market
Saying that a premium brand like Peugeot isn’t relevant due to non competitive price, is absurd. Like that BMW and Merc also should say they are non relevant due to price…. A premium brand should be treated as a premium brand and marketed as one. I find that excuse very weak….dunno how to sell, say dunno how to sell lah.
who is doing design and development work for peugeot next model for this region? french or european ? why not indian based or thai based or even local malaysian based design team ?… VW Polo Sedan was design specifically for this region with indian market target. they are good enough to carve out a piece of pie in malaysian market. however, nothing comes out from next iteration of this model though… perhaps why not approach proton to design and collaborate in small car (segment a & B) for this region ?
Actually is not just the pricing Mr Yeo… the Peugeot brand is equivalent to bad decison that the owner will experience poor reliability and aftersales, and as a result poor resale.
Nobody expects a peugeot to fight china prices. Infact the european marque branding and costing give it an air of luxury thay the china brand couldnt match. Just get your aftersales and warranty right.
Its a cover up, good excuse because cannot sell, or dunno how to sell, then say Pijot not competitive vs Chinese brands lor. It’s like comparing a perodua vs a German premium car…. But see how competitive, German brands still survive in Malaysia, becos they know there is a customers base for premium products.
Extremely bad decision by Stellantis to slow down the Peugeot brand as it is a great brand with good quality for the newer models.
You should be looking into the expansion of the brand and models and also creating more sales & service in Malaysia and bring in the e308, e3008 and other models too
Cheap car for cheap skate