MAA reports 2024 saw an unbelievable 816,747 vehicles sold in the country.
Malaysia’s automotive industry reached unprecedented heights in 2024, with total vehicle sales surpassing 800,000 units for the first time in history. The Malaysian Automotive Association (MAA) reported a Total Industry Volume (TIV) of 816,747 units, marking a 2.1% increase from the previous year’s record of 799,821 units.
Key Performance Highlights
The passenger vehicle segment emerged as the primary growth driver, recording sales of 747,180 units, a significant 3.9% increase from 2023. National automakers strengthened their market position, capturing 67.7% of the passenger vehicle segment, up from 66.9% in the previous year.
December 2024 set a new monthly sales record with 81,735 units, breaking the 80,000-unit threshold for the first time in industry history. This exceptional performance was attributed to aggressive year-end promotional campaigns and strong market demand.
Electric Vehicle Market Gains Momentum
The electrified vehicle (xEV) sector showed remarkable growth, representing 5.6% of total sales compared to 4.8% in 2023. Battery Electric Vehicle (BEV) sales experienced a substantial 45% increase, while overall xEV sales reached 45,562 units, comprising:
- 14,766 BEV units
- 30,796 hybrid vehicle units
Economic Factors Driving Growth
Several key economic factors contributed to the industry’s stellar performance:
- GDP growth of 5.2% in the first three quarters of 2024
- Stable Overnight Policy Rate (OPR) at 3%
- Record-low unemployment rate of 3.2%
- Stable socio-political environment
- Strong domestic demand across all economic sectors
Commercial Vehicle Segment Faces Challenges
Despite overall industry growth, the commercial vehicles segment experienced a 13.8% decline, recording 69,567 units in 2024. This downturn was primarily attributed to the removal of diesel subsidies in June 2024, which particularly impacted pickup truck sales with a 16.4% decrease.
Production Achievements
Total Industry Production (TIP) also reached a new record of 790,347 units, representing a 2% increase from 2023. The passenger vehicle segment led production growth with a 2.7% increase, while commercial vehicle production decreased by 8%.
Future Outlook
MAA projects a more conservative outlook for 2025, forecasting total sales of 780,000 units, a 4.5% decrease from 2024. However, several positive factors could influence market performance:
- Projected GDP growth of 4.5-5.5%
- Increased minimum wage to RM1,700
- Government servant salary revisions
- Continued BEV tax incentives through 2025
The industry faces potential challenges from the US-China trade tensions, petrol subsidy rationalization, and limited EV charging infrastructure in less developed states. However, these factors might accelerate the transition to electric vehicles, potentially offsetting some negative impacts.
This historic performance in 2024 demonstrates the resilience and adaptability of Malaysia’s automotive sector, setting a strong foundation for future growth despite anticipated challenges in 2025.
