Malaysia's week had one dominant story, a quality failure at Chery, set against steady movement toward local assembly and a round of pre-show discounting.

The Omoda 5 rear-axle failure

On October 6 an Omoda 5's rear suspension assembly separated while the car was being driven in Johor Bahru; no injuries were reported. Malaysia's Road Transport Department has temporarily suspended the model's Vehicle Type Approval, blocking new registrations under it during an investigation, and Chery Auto Malaysia has started a recall of 8,878 Omoda 5 C and H variants with free inspections. The recall covers pre-facelift cars; the newer Chery O5, which replaced it, has a different rear-suspension design. Chery chairman Yin Tongyue apologized to Malaysia's investment, trade and industry minister and urged Chinese carmakers to take a long-term approach overseas (second report). The incident also revived a policy debate: MP Yeo Bee Yin called for lemon-law protections, noting that Budget 2026 promised to amend the Consumer Protection Act and that no update has followed.

Local assembly and exports

BYD Malaysia plans to build in Kulim, Kedah, through Inokom, but an analysis argues local assembly does not guarantee lower prices: iCaur and Leapmotor kept their prices after local assembly began, and Proton eMas prices effectively rose. Malaysia's CKD EV policy sets a RM100,000 minimum price and requires 80% of output to be exported, with a waiver for a new entrant working with an existing local partner. At Proton, exports of 7,370 vehicles in the first nine months have passed the 2025 full-year figure, with Geely-branded vehicles making up most of the increase, and Proton confirmed that the Geely Okavango is built at Tanjong Malim for export. iCaur will show its locally assembled 03, from RM119,740, at the ACE show.

Pricing before the Auto Car Expo

GWM priced the Wey G9 Hi4 HEV at RM249,800, RM20,000 below the PHEV, and is offering RM17,000 in rewards on the Haval H6 HEV. BYD has year-end deals on the Atto 3 and Sealion 7, from RM109,800 and RM159,800. The Jetour T1 gets RM2,000 off at the show, which runs October 31 to November 1.

What it means

  • The recall is the week's main risk signal for Chinese brands in Malaysia; the investigation's outcome is not yet reported.
  • Assembly policy and export rules, not showroom prices, are where Malaysia's leverage over Chinese entrants is showing.
  • Models in the pipeline include the Jetour F700 pickup, an Xpeng L05 under test and a hybrid Omoda C7 for 2027, none with confirmed prices.