China Ties, Malaysian Questions: Can Stellantis and Dongfeng Find Synergy in Southeast Asia?
Global automaker Stellantis and China’s Dongfeng Group are deepening their 34-year relationship with a new strategic cooperation agreement in China. Focused on reinforcing their Dongfeng Peugeot Citroën Automobile (DPCA) joint venture in Wuhan, the partnership will produce all-new Peugeot-branded and Jeep-branded New Energy Vehicles (NEVs) for the Chinese market and for global export starting in 2027. The cooperation is built on leveraging Stellantis’ global advantages and Dongfeng’s intelligent electric vehicle technologies, backed by a combined investment exceeding 8 billion Chinese Yuan (approximately €1 billion).
We have to ask: Will this China-based global deal translate into local synergies between Stellantis Malaysia and Dongfeng’s nascent local operations, or are both entities too bogged down in their own domestic struggles to cooperate?
Both Stellantis and Dongfeng have navigated a volatile Malaysian automotive landscape between 2024 and 2026, marked by stiff competition and strategic realignments. On the Stellantis Malaysia front, Peugeot was revived only with the new 408 only for excitement around the brand to quickly disappear. They have since quietly confirmed that no new Peugeot models will be brought into Malaysia for the foreseeable future, indicating a focus on clearing existing stock and pivoting towards their Leapmotor business. Plans to revive the Jeep business in Malaysia have also been shelved, while the Alfa Romeo business has been ‘licensed’ out to a separate entity to deal with. Maserati too has shut its doors in Malaysia after years under Naza Auto purview.
Stellantis globally has also faced significant internal challenges, recording approximately €22 billion in charges in the second half of 2025, a painful write-down attributed to an overestimation of the pace of global EV adoption.
As for Dongfeng, the brand faced a botched launch in Malaysia with the introduction of the BOX EV via PEKEMA with poor sales and low enthusiasm for the brand locally. Then, Singaporean Dongfeng dealer partner Volt Auto stepped in to ‘reset’ expectations with a ‘launch’ of the VIGO and 007 EVs, promising right hand drive CKD with localization plans promised too. However, all this was back in February and we’ve yet to see cars on the road 3+ months on.
What does this all mean for Stellantis and Dongfeng in Malaysia? Well, it’s clear that there are SOME synergies for cooperation, but we don’t really see how it would work out. Perhaps this will mean cheaper Asia-specific Peugeot models with right hand drive CKD kits coming from China. If that were the case, we’re not sure what PEKEMA or EVOLT’s role would be, as Stellantis Malaysia could probably order everything themselves and assemble it in Gurun. It will be interesting to see yet another relaunch of the Peugeot brand in 2027. Peugeot has been in stewarded by Malaysia by Asia Motors, MBF Group, Cycle & Carriage, Naza Group, Bermaz Auto Alliance, and Stellantis Malaysia. Seventh time’s a charm!
