The companies, which sell Mercedes-Benz and BMW vehicles respectively, are the first big players to withdraw from the four-decade-old trade association.

Other brands which have dropped out in recent years include Malaysia's Proton, Sweden's Saab, Britain's BMW-owned Rolls-Royce, and French makes Peugeot, Citroen and Renault.

Read the full report in Saturday's edition of The Straits Times.