KUALA LUMPUR: The domestic automotive industry has yet to feel the impact of US tariffs on vehicle parts, according to Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain.
He said any potential cost increases or supply disruptions would likely only begin to materialise in about six months.
“We haven’t seen any impact so far. If anything, it may not be felt for six months. At this point, we don’t have any clear indication yet,” he told a press conference today.
Mohd Shamsor noted that the primary concern centres around motor vehicle parts and accessories, which account for nearly US$100 million (RM424 million) in trade.
“This segment makes up about 80% of Malaysia’s total vehicle-related exports to the US, excluding those related to railway and tramway systems,” he added.
Mohd Shamsor said the main concerns are centred around imported completely knocked down (CKD) vehicle parts, which could be subject to US tariffs when sourced from multiple countries.
“This impact may eventually filter down and affect us, potentially leading to slightly higher costs for parts,” he said.
As for direct vehicle exports, Mohd Shamsor noted that volumes remain minimal, amounting to only about US$142,000 in 2024. “It’s minimal, mainly due to the differences between left-hand and right-hand drive vehicle specifications.”
According to MAA, new vehicle sales in Malaysia fell 4.6% in the first half of 2025 compared to the same period last year.
A total of 373,636 units were sold between January and June, down from 391,451 units in the corresponding period of 2024.
MAA attributed the decline to a high base effect following last year’s record-breaking total industry volume (TIV) of 816,747 units, alongside a sharp drop in January 2025 sales, which followed a surge in advance purchases in December 2024.
“Advance purchases in December 2024 affected sales in January 2025,” MAA said, highlighting that the highest monthly TIV was recorded in December 2024 with 81,735 units sold, compared to just 50,397 units in January 2025.
Commercial vehicle demand also weakened, partly due to the termination of diesel subsidies in June 2024. Sales in this segment fell 21% to 26,552 units.
Meanwhile, passenger vehicle sales dipped 3% to 347,084 units.
