Chery Auto (HKEX: 9973) is recalling 8,878 Omoda 5 SUVs in Malaysia over potentially defective rear axle welds, after an axle detached from a vehicle while it was being driven, prompting the local regulator to suspend new registrations of the model.

The incident involved a 2023 Omoda 5 in Malaysia and caused no injuries, Chery said in a statement on Sunday.

The company said it immediately launched an investigation and has been in close contact with regulators, including Malaysia's Road Transport Department (JPJ).

The investigation found that some welds on the rear axle trailing arms of vehicles in the affected batch may lack sufficient strength, creating a risk of weld rupture under extreme conditions. Chery said models using this design had already been discontinued.

Chery's Malaysian subsidiary has launched a recall in coordination with JPJ to inspect the components and replace them free of charge where necessary.

Chery also said it had launched precautionary checks on Omoda 5 vehicles from the same production batch in China and other relevant markets. The company said it would disclose the findings promptly.

An Omoda 5 lost its rear axle and wheels while being driven in Johor Bahru, in the Malaysian state of Johor, on October 6, raising concerns about the model's safety, according to local media reports.

JPJ announced on October 11 that it was immediately suspending the Omoda 5's Vehicle Type Approval (VTA) and new registrations until a technical investigation is completed and the safety risks are confirmed to have been adequately addressed.

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