KUALA LUMPUR, Sept 12 — Malaysian car distributor Bermaz Auto Bhd. saw first-quarter net income plunge 88 per cent amid rising competition from Chinese automakers.

Shares tumbled nearly 9 per cent to 61.5 sen on Friday, hitting a record low, according to Bloomberg.

The distributor of Mazda, Kia, and Xpeng vehicles posted net income of RM8.28 million for the quarter ended July, down sharply from last year.

Revenue fell 42 per cent in the quarter as domestic sales volumes declined.

Bermaz warned that seven straight quarters of dwindling earnings are expected to continue as Chinese brands expand aggressively in Malaysia.

“Vehicle sales in the country are impacted by the influx of Chinese-made vehicles, which are making inroad with their low pricing strategy,” the company said.

It also flagged inflation, geopolitical tensions, and slower global growth as factors likely to weigh on the Malaysian auto market.

Bermaz hopes the Mazda CX-60 and CX-80 will help stabilise sales, while Apex Securities cut its recommendation to sell and slashed the price target to 50 sen from 93 sen.