In 2023, the Malaysian automotive industry experienced an exceptional 11% growth in sales, reaching an all-time high. The surge was primarily fueled by the passenger cars sub-segment, highlighting the country’s resilient domestic economy and stable socio-political environment.
The Malaysian Automotive Association (MAA) revealed that the Total Industry Volume (TIV) or vehicle registrations reached 799,731 units during the year, surpassing the previous record of 721,177 units set in 2022. This remarkable performance marked the second consecutive year that TIV exceeded the 700,000 units mark, signaling a strong rebound from the downturn caused by the Covid-19 pandemic in 2020-2021.
Several factors contributed to the stellar performance in 2023:
- Fulfillment of tax-free car bookings, many registered before March 31, 2023.
- A stable socio-political environment after the formation of a Unity Government post GE-15.
- A resilient domestic economy.
- Introduction of new models, including competitively priced electric vehicles.
- Improved industry supply chain environment.
Mr. Mohd Shamsor Mohd Zain, MAA President, expressed gratitude to the government for creating a stable socio-political environment, enabling businesses to thrive.
Both Passenger Vehicles and Commercial Vehicles segments recorded growth. New Passenger Vehicle registrations in 2023 increased by 12% to 719,160 units, with national makes dominating the market share. Non-national makes also saw a 6% growth.
Electrified vehicles (xEV) accounted for approximately 5% of TIV, with a 69% increase in xEV sales from 2022. MAA anticipates continued growth in xEV demand, supported by government initiatives and the introduction of new models.
The Commercial Vehicles segment registered a modest 2% growth, reaching 80,571 units, driven by increased demand and investment following the formation of the Unity Government post GE-15.
Monthly vehicle sales consistently exceeded 60,000 units from May 2023 onwards, with four months surpassing the 70,000 units mark.
Total Industry Production (TIP) of new vehicles in 2023 increased by 10% to 774,600 units, marking the second consecutive year exceeding the 700,000 units mark.
Looking ahead to 2024, the industry considers economic and environmental factors, including global economic uncertainties, IMF’s forecasted slowdown, Malaysia’s expected economic expansion, improved supply chains, new model launches, and the decision to maintain the benchmark Overnight Policy Rate at 3%, ensuring stability in loan borrowing costs. However, concerns over subsidy rationalization, the cost of living, proposed taxes, and higher service tax rates may impact consumer spending.
