Malaysia's Auto Industry Hits Record 816,747 Units In 2024

KUALA LUMPUR, Jan 21 (Bernama) -- Malaysia’s automotive industry achieved a record Total Industry Volume (TIV) of 816,747 units in 2024, surpassing the 800,000-unit mark for the first time. 

December 2024 recorded the highest monthly TIV ever, with 81,735 units sold. The 2024 TIV represents a two per cent increase compared to 799,821 units in 2023.

Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain attributed this exceptional performance to Malaysia's resilient economy. 

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"Gross Domestic Product (GDP) growth of 5.2 per cent in the first three quarters of 2024, compared to 3.8 per cent during the same period in 2023, along with the Overnight Policy Rate (OPR) remaining at 3 per cent since May 2023, created a conducive environment for vehicle loans. 

"Additionally, a stable socio-political environment and a low unemployment rate of 3.1 per cent, the lowest in a decade, further boosted consumer confidence and purchasing power," he said.

He was speaking at a press conference held in conjunction with a memorandum of understanding signing ceremony between MAA and the Malaysia Automotive Robotics and IoT Institute (MARii).

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High backlog orders, particularly in the A segment, contributed to an increase in National Makes’ market share, which accounted for 62 per cent of total TIV in 2024. 

"The surge in Battery Electric Vehicle (BEV) sales, which rose by 45 per cent in 2024 due to tax incentives and the introduction of new models, particularly from China, also played a crucial role. 

"Aggressive sales and promotional campaigns by Original Equipment Manufacturers (OEMs) and distributors, as well as the launch of models featuring advanced technologies, resonated positively with the market," he said.

Looking ahead, he noted that the automotive market and Malaysia's economy are expected to remain resilient in 2025. 

"GDP growth is forecast to range between 4.5 per cent and 5.5 per cent, while Bank Negara Malaysia is likely to maintain the OPR at 3 per cent, supporting sustained demand for vehicles. 

"An increase in the minimum wage to RM1,700 in February 2025 and a salary revision of up to 15 per cent for government servants are expected to further boost vehicle purchases," he said.

He added that a stable labour market with low unemployment at 3.2 per cent will ensure income security, while the anticipated expiration of BEV tax exemptions at the end of 2025 could spur urgency in BEV purchases. 

"The introduction of new brands and models, along with continued promotional strategies, is likely to sustain market excitement," he said.

However, he cautioned about potential downside risks. 

"The US-China trade war could have mixed effects on Malaysia, particularly through reduced external trade and the relocation of Chinese plants. 

"The mid-2025 petrol subsidy rationalisation exercise may impact demand for higher-engine capacity vehicles but could encourage EV sales. Furthermore, limited EV charging infrastructure in less developed states may hinder widespread EV adoption, affecting overall TIV growth," he added.

-- BERNAMA