Chery Omoda 5 sales stopped in Malaysia following rear axle failure

Malaysian authorities have suspended new registrations of the Chery Omoda 5 as a safety precaution after a reported rear axle failure prompted a second investigation into the small SUV.

According to Free Malaysia Today, images and videos circulating on social media showed an Omoda 5 with its rear axle assembly and wheels separated from the vehicle’s body following an incident on October 6 in Johor Bahru, southern Malaysia.

Malaysia’s road transport department (Jabatan Pengangkutan Jalan, or JPJ) announced on October 11 that it would temporarily suspend the model's relevant vehicle type approval (VTA), halting new registrations pending a technical investigation.

“JPJ will also conduct a technical audit of the Omoda 5’s production and assembly line and related axle component suppliers, covering compliance with Good Manufacturing Practice, quality control systems, weld joint inspection procedures and the safety level of the components used,” JPJ director-general Aedy Fadly Ramli said.

The issue affects remaining stock of the Omoda 5 which was introduced in Malaysia in 2023, but then rebranded as the Chery O5 as part of an update in September 2025.

The Omoda 5 is no longer featured among new models listed on Omoda's Malaysian public website.

The JPJ says the suspension will be lifted only after corrective and preventive measures have been implemented and it has verified that the safety risks have been addressed.

The Malaysian-market Omoda 5 was locally assembled from completely knocked-down (CKD) kits by Inokom Corporation, a vehicle assembler majority-owned by Sime Motors, at its 200-acre Kulim plant in Kedah.

Inokom also has manufacturing tie-ups with BMW, Mini, Porsche, Hyundai, Kia and Mazda, among others.

Omoda is part of the Omoda Jaecoo sub-brand owned by Chery and was the sixth-best selling brand in Malaysia in September 2026, one place behind Jetour, another Chery brand coming to Australia.

Australian versions of the Omoda 5 are manufactured in China and sold here as the Chery C5 – a rival to the MG ZS, GWM Haval Jolion and Hyundai Kona – and Chery Australia has confirmed no similar issues have been experienced here.

“Chery Motor Australia is aware of an incident that took place in Malaysia regarding the axle of an Omoda 5 vehicle,” said the auto brand in a statement provided to CarExpert.

“There have been no reported incidents in Australia. We at Chery Australia are committed to providing vehicles that meet the highest standards of quality and safety. All our vehicles undergo rigorous testing and quality control procedures to ensure they comply with relevant Australian safety regulations and standards.

“We stand behind the quality and safety of our vehicles and will always work towards maintaining the highest levels of performance and reliability.”

This is the second investigation into a rear axle failure involving a Malaysian-market Omoda 5. In 2024, Chery recalled 600 vehicles there as a precaution following a similar incident.

The original Malaysian-market Omoda 5 employs torsion-beam rear suspension. Earlier Australian variants also used this layout, while the updated C5 (and the related E5 electric version) has independent multi-link rear suspension.

The Malaysian-market facelift, renamed Chery O5, also adopted independent multi-link rear suspension and is not covered by the reported registration suspension.

According to Chery, the broader Omoda 5 model family, including hybrid and electric versions, has been sold in more than 60 countries and regions.

Rear axle concerns also prompted a precautionary safety campaign in Indonesia in May 2024, covering 420 Omoda 5 vehicles.

At the time, Chery Indonesia said it identified the potentially affected vehicles following an investigation into a rear axle component supplier. Owners were contacted to arrange inspections, with replacement parts provided free of charge where required.

The Indonesian vehicles were locally assembled by PT Handal Indonesia Motor at its Pondok Ungu factory in Bekasi, West Java.

MORE: Explore the Chery C5 showroom