Things are still worse than in 2024, but February 2025 was better than the first month for the Malaysian automotive industry.
The Malaysian automotive industry demonstrated signs of recovery in February 2025, according to the latest data released by the Malaysian Automotive Association (MAA) on March 18. While year-on-year figures still show decline, month-on-month performance indicates promising market stabilization after January’s setback.
February Performance Highlights
Total Industry Volume (TIV) surged by an impressive 31% compared to January 2025, reaching 63,906 units in February. This substantial growth signals a market rebound following a challenging start to the year.
Passenger Vehicle (PV) sales showed resilience, maintaining nearly identical figures compared to February 2024 with 60,189 units sold (a marginal increase of 0.07%). However, Commercial Vehicle (CV) sales continued to struggle, declining by 24% year-on-year to 3,717 units.
Production Figures Reflect Market Challenges
Production numbers revealed ongoing adjustments in manufacturing output, with total vehicle production at 61,545 units in February 2025, representing a 7% decrease compared to the same period last year. Passenger vehicle production dropped by 7% to 58,606 units, while commercial vehicle production experienced a more significant decline of 20%, with only 2,939 units produced.
Year-to-Date Performance
The cumulative figures for January and February 2025 highlight broader challenges facing the industry. Year-to-date vehicle sales reached 113,056 units, marking a 14% decrease compared to the first two months of 2024. Similarly, production figures for the first two months totaled 118,444 units, down 17% from the previous year’s 143,516 units.
Positive Outlook for March 2025
The MAA forecasts higher sales volumes for March 2025, citing several favorable factors:
- Anticipated rush for vehicle deliveries before the Hari Raya holidays
- Companies pushing to clear inventory before the financial year-end on March 31
- Historical trends of March being a high-sales month
Market Analysis
The February recovery suggests the industry may be gaining momentum after weathering initial economic headwinds in 2025. While commercial vehicle segments continue to face significant challenges, the stability in the passenger vehicle market indicates resilient consumer demand in this sector.
Industry experts are cautiously optimistic about the projected growth in March, which could potentially narrow the year-on-year gap in performance metrics if the positive trajectory continues.
For automotive stakeholders, the coming weeks will be crucial as the industry navigates seasonal demand fluctuations and approaches the end of the first financial quarter of 2025.
