Malaysia’s car sales hit an all-time high for the year 2024. The country’s total industry volume (TIV) amounted to 816,474 units sold, according to the Malaysian Automotive Association (MAA). This record is 2.1 per cent higher than 2023’s sales of 799,821 units, which was also a record number for the country.
SALES STATISTICS
Passenger vehicle sales dominated the market with 747,180 units sold, 3.9 per cent up on-year. Meanwhile, commercial vehicle sales declined by 13.8 per cent on-year with 69,567 vehicles sold. Last year, commercial vehicle sales reached 80,676 units sold. All in all, this is the first time vehicle sales in Malaysia have reached 800,000 units.
“This outstanding TIV achievement would not have been possible if not for the much stable socio-political environment and the various measures undertaken by the Government to stimulate the country’s economy leading to a higher GDP growth,” said MAA president, Mohd Shamsor Mohd Zain at a recent press conference.
In monthly sales, December 2024 alone sold 81,735 units, the only month to outdo March 2023’s sales of 78,895 units. This is a significant improvement considering the decline in sales and manufacturing in September of 2024.
Battery Electric Vehicle (BEV) sales increased by 45 per cent in 2024 with Perodua also hitting their own sales record for the year. The local auto maker reached 358,102 vehicle sales, an 8 per cent increase in sales and 7 per cent increase in production. Fellow Malaysian company Proton’s sales decreased by a small margin of 1.5 per cent on-year with 774,700 units sold overall. However, in monthly sales, Proton finished the year strong with a 19.7 per cent incline, reaching 152,352 units.
LOOKING TO THE FUTURE
Malaysia’s transition to EV shift appears bright as high BEV sales are brought on by “aggressive sales and promotional campaigns” employed by car companies. Additionally, the MAA recently expressed that the Malaysian government may need to extend the tax break meant for imported BEVs until the year 2030. The current tax break is meant to end by December 31, 2025. The extension of this policy may advance Malaysia’s goal of “EV adoption target of 15 per cent of total sales volume by 2030.”
Meanwhile, the country’s first locally manufactured EV, the Proton e.MAS 7 recently scored 5 stars from the ASEAN NCAP’s safety ratings. This newly released EV received up to 3,000 additional orders from Malaysian customers, adding to the backlog of category A vehicles that boosted year-end EV sales.
Though the near future looks positive for Malaysia’s automotive industry, the MAA remains wary of potential risks. The association is projecting TIV to decrease in the year 2025 to 780,000 units. This prediction is based on a forecast by the International Monetary Fund (IMF). The IMF’s prediction cites a 4.5 per cent growth for Malaysia’s Gross Domestic Product (GDP), an increase to MYR 1,700 for minimum wage, and 3.3 per cent growth for the country’s economy.
More significantly, the MAA’s cautious outlook is affected the removal of fuel subsidies and potential effects of the USA’s new administration on the international market.
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