Malaysia vehicle market grows to new high in 2024

Malaysia’s new vehicle market expanded by 4% to a monthly record of 81,735 units in December 2024, from already strong year-earlier sales of 78,398 units, according to registration data released by the Malaysian Automotive Association (MAA).

Full-year sales rose by 2% to 816,747 units, also a new record for the market, from 799,821 units in 2023, making Malaysia the second-largest vehicle market in the ASEAN region for the second year running - behind Indonesia. Sales of passenger vehicles rose by 4% to 747,180 units last year, while commercial vehicle sales fell by 14% to 69,567 units – with the removal of the government’s diesel subsidy in June 2024 affecting demand in key segments such as pickup trucks. Total vehicle production in the country last year rose by 2%, to 790,347 units compared with 774,600 units in 2023.

The passenger vehicle market last year was driven by strong economic growth, with the latest government data showing GDP expanded by 5.2% in the first nine months of the year compared with 3.8% in the same period of 2023. Consumer confidence remains high, with unemployment at a decade-low of 3.2%. The central bank kept its overnight lending rate steady at 3% last year, which the MAA said “provided a conducive environment for vehicle loans”. A strong order backlog, particularly for new entry-level models from national carmakers such as Perodua, also helped drive up sales last year.

The MAA expects the vehicle market to decline by 4.5% to 780,000 units in 2025, with passenger vehicle sales expected to fall by 5% to 710,000 units after two years of record sales. Commercial vehicle sales are expected to be slightly higher at 70,000 units. The association expects the market to be supported by steady global economic growth and GDP growth of between 4.5% and 5.5% in Malaysia – supported by strong domestic consumption and investment and a steady interest rate environment.

Sales of battery electric vehicles (BEVs) rose by 45%, according to the MAA, while separate industry data shows the segment expanded by 64% to just under 22,000 units. The government has set a target for BEVs to account for 15% of total vehicle sales in the country by 2030, rising to 80% by 2050.

Perodua reported an 8% increase in sales to a record 358,102 vehicles last year, driven by strong demand for new entry-level models. Production rose by 7% to 343,400 vehicles, way above its stated normal annual production capacity of 320,000 units. The company also plans to launch its first BEV next year, with a price target of under MYR100,000 (US$22,280).

Proton ’s global sales fell by 1.5% to 774,600 units last year, despite a 20% surge in December, including 4,783 exports. The Saga remained by far the company’s best-selling model with deliveries rising by 4% to 72,769 units; followed by the Geely-based X50 compact SUV with 23,647 units; the Geely-based S70 sedan with 19,182 units; and the Persona sedan with 18,853 units. The automaker is stepping up production of the Geely-based e.MAS 7, the company’s first BEV model, following its launch in December