Malaysia’s New Car Sales Hit Record High in 2024: KUALA LUMPUR, Jan. 22 (Xinhua) – Malaysia’s automotive industry achieved a new milestone in 2024, as new car sales surged to a record high of 816,747 units, reflecting a 2.1% year-on-year growth, according to the Malaysian Automotive Association (MAA). The rise was fueled by resilient economic growth, strong domestic demand, and a significant contribution from the electric vehicle (EV) sector.
Highlights of 2024 Car Sales
- Passenger Cars Dominate the Market
The passenger car sub-segment remained the backbone of Malaysia’s automotive market in 2024, accounting for the majority of sales. The segment’s growth was supported by affordable financing options, a recovering economy, and increasing consumer confidence. National brands like Perodua and Proton continued to dominate, with their compact and fuel-efficient models being top choices among buyers. Perodua’s highly popular models such as the Axia and Bezza played a pivotal role in the overall market performance. - Electric Vehicle (EV) Segment Breaks Records
Malaysia’s EV market experienced a breakthrough in 2024, with EV sales rising by 19% year on year to reach 45,562 units. This growth underscores Malaysia’s transition towards greener transportation, aligning with global trends in sustainable mobility. The government’s incentives, such as reduced import duties for EVs and tax exemptions for EV buyers, contributed to the rising adoption. Infrastructure development, including the expansion of charging stations nationwide, further encouraged EV sales. Key EV Models Driving Growth:- Tesla Model Y: Popular for its advanced technology and range.
- BYD Atto 3: Known for its affordability and compact design.
- Hyundai Kona Electric: A strong contender in the compact SUV segment.
- Strong Domestic Production
Malaysia’s total vehicle production grew by 2% year on year, with 790,347 units manufactured in 2024. This increase highlights the ability of local manufacturers to keep pace with growing demand. Local production was driven by efficient supply chain management and an emphasis on producing fuel-efficient and affordable vehicles tailored for domestic and regional markets.
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Malaysia’s Automotive Industry Highlights (2023 vs. 2024)
| Category | 2023 | 2024 | Growth (%) |
|---|---|---|---|
| Total New Car Sales | 799,643 units | 816,747 units | 2.1% |
| Electric Vehicle Sales | 38,288 units | 45,562 units | 19% |
| EV Market Share | 4.8% | 5.6% | – |
| Total Vehicle Production | 774,950 units | 790,347 units | 2% |
Challenges Facing the Automotive Industry
Despite the positive performance in 2024, the automotive sector faces several challenges:
- Economic and Policy Factors:
- Ongoing trade tensions and global supply chain issues may impact vehicle imports and exports.
- The petrol subsidy rationalization exercise for higher-engine-capacity vehicles is expected to raise operational costs and influence consumer buying patterns.
- Rising Competition:
- The market is becoming increasingly competitive with the entry of international automakers offering EVs and hybrid models.
- Affordability Concerns:
- High borrowing costs and inflation may limit consumer spending in 2025.
2025 Forecast: Anticipating a Decline
The MAA has projected that new car sales in Malaysia will decline by 4.5% year on year, dropping to 780,000 units in 2025.
Reasons for the Decline:
- Economic Pressures:
Slower economic growth and rising costs are expected to impact consumer confidence. - Reduction in Government Incentives:
As subsidies and tax breaks for conventional vehicles are phased out, consumers may delay purchasing decisions. - Shift in Consumer Preferences:
The growing demand for EVs and hybrids may disrupt traditional car sales, especially in the mid-range and premium segments.
Future Trends in Malaysia’s Automotive Industry
The Malaysian automotive industry is expected to undergo significant changes in the coming years, shaped by technology and evolving consumer preferences.
- Rise of Electric Vehicles:
The EV market is likely to expand further, supported by government policies promoting sustainable energy. Local automakers are also expected to enter the EV space. - Focus on Hybrid Technology:
Hybrid vehicles, which offer a middle ground between traditional and electric vehicles, are gaining traction in Malaysia. - Connected Cars:
With advancements in technology, features like autonomous driving, vehicle connectivity, and advanced safety systems will become key differentiators for automakers.
Conclusion
Malaysia’s automotive industry celebrated a record-breaking year in 2024, driven by robust economic performance, strong domestic demand, and the rising adoption of electric vehicles. However, challenges such as economic uncertainties and policy shifts may slow growth in 2025. To maintain momentum, automakers must focus on innovation, affordability, and sustainability to meet the evolving needs of Malaysian consumers.
