KUALA LUMPUR: The Malaysian automotive market maintained its strong momentum in 2025, surpassing the 800,000-unit threshold for the second consecutive year, with total industry volume (TIV) rising to 820,752 units from 816,747 units in 2024, representing an increase of 0.5%.
Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain said the robust performance was supported by a resilient economy driven by strong domestic demand and a recovery in exports, as gross domestic product (GDP) expanded by 4.7% in the first three quarters of 2025.
He noted that the Overnight Policy Rate, which was reduced to 2.75% from July 2025, provided a conducive environment for vehicle financing, while a stable socio-political landscape helped underpin business confidence and employment stability.
“The positive employment market also supported the industry, with the unemployment rate reaching an 11-year low of 2.9%,” he said in a press conference today.
Mohd Shamsor said national makes recorded sales of 511,468 units, accounting for a 62.3% market share, compared with 309,284 units for non-national makes, which represented a 37.7% share.
“The combined market share of the two national makes improved by 0.4% to 62.3% or 511,468 units, albeit with a lower growth rate of 1.1%.
“Meanwhile, non-national makes registered a lower sales volume of 309,284 units, representing a 0.6% decline in 2025 compared with a year earlier, mainly due to weaker contribution from the commercial vehicles segment,” he said.
He added that total industry production in 2025 declined by 5.4% to 747,780 units from 790,347 units in 2024.
“The decline in production despite record TIV reflects the higher number of completely built-up battery electric vehicles (CBU BEV) registered in 2025.
“The expiry of CBU BEV incentives on Dec 31, 2025 further accelerated BEV sales and demand,” he said.
Looking ahead, Mohd Shamsor said that while the automotive sector faces several challenges, a number of positive factors could support market resilience in 2026.
“These include continued low unemployment, which supports income stability and consumer confidence, as well as strong demand for affordable and fuel-efficient vehicles, particularly national makes,” he said.
He added that the continued development of the electric vehicle ecosystem would enhance support from foreign EV manufacturers through investments, technology transfer and future growth.
“The introduction of new brands and models is expected to stimulate market interest, while attractive promotional strategies and value-added services will provide customers with better options,” he said.
Mohd Shamsor said that based on prevailing risks and factors affecting the automotive sector, MAA forecasts TIV for 2026 at 790,000 units, representing a 3.8% decline from 2025. – Bernama
