The Malaysian car market defied expectations in 2024, achieving a record-breaking Total Industry Volume (TIV) of 816,747 units sold. This represents a 2.1% increase over 2023’s TIV of 799,821 units, the Malaysian Automotive Association (MAA) announced.
Passenger vehicles led this growth, with a total of 747,180 units delivered, a 3.9% increase from the previous year. However, commercial vehicle sales experienced a decline, recording only 69,567 units sold last year, marking a 13.8% drop from 2023.
The MAA attributes the overall TIV increase to several factors, including a stable socio-political environment, a low unemployment rate, high backlog orders in the A-segment, and a surge in battery electric vehicles (BEVs). The decline in commercial vehicle sales is likely due to the rationalisation of diesel subsidies in June 2024.
Total Industry Production (TIP) for 2024 also saw an increase, reaching 790,347 units, a 2% rise from 2023. Passenger vehicle production increased by 2.7%, while commercial vehicle production dropped by 8%, from 49,709 units in 2023.
Moving forward to 2025, the MAA forecasts a TIV of 780,000 units, with passenger vehicles accounting for 710,000 units and commercial vehicles at 70,000 units. This projected slowdown is based on several factors, including:
- The International Monetary Fund (IMF) forecasting marginal global economic growth at 3.3% for 2025
- Malaysia’s GDP growth projected to be within 4.5% to 5.5%
- Bank Negara maintaining the OPR at 3% in 2025
- An increase in the minimum wage to RM1,700 from 1st February 2025
- Salary revisions for government servants up to 15%
- Low unemployment rate at 3.2%
- The expiration of duties exemption for BEVs at the end of 2025
Additional factors, such as the rationalisation of RON 95 petrol by mid-2025, and uncertainties surrounding the US-China trade war, could also affect the 2025 TIV, potentially encouraging sales of electrified vehicles (xEV).
These figures from the MAA show that the Malaysian car industry is going strong. But, with more cars on the road, we’ll probably be spending more time stuck in traffic. Ah well, can’t have it all, right?
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