MAA raises 2024 vehicle sales estimate to 765k

KUALA LUMPUR: The Malaysian Automotive Association (MAA) has revised its total vehicle sales forecast for 2024 to 765,000 units, up from the previous estimate of 740,000 units.

However, this new forecast remains about 4% lower than the record-breaking sales of 799,731 units achieved in 2023.

The MAA projects that the total industry volume (TIV) for passenger vehicles will shrink by approximately 3% to 696,150 units, while the TIV for commercial vehicles is expected to decline more significantly, by about 14.5% to 68,850 units.

The association president Mohd Shamsor Mohd Zain said that several factors were taken into account in their revised TIV forecast for 2024, including the resilient domestic economy.

He said the government is optimistic about Malaysia's gross domestic product (GDP), expecting it to expand within the official forecast range of 4% to 5%.

“Bank Negara's decision to maintain overnight policy rate (OPR) at 3% at its recent Monetary Policy Committee meeting may also help to stimulate domestic spending including for big ticket items like new cars,” he told a press conference in conjunction with association review of first half sales and outlook for the second half.

Another factor contributing to the revised forecast is the healthy backlog of orders, particularly in the A-segment passenger cars market, indicating strong demand that will continue to drive sales in this segment.

Mohd Shamsor also said the introduction of new players in the market and the launch of newer and more affordable models with advanced features are also expected to boost demand.

“These include exciting newer and affordable models with newer features for both internal combustion engine (ICE) vehicles and all types of electrified vehicle (xEV),” he added.

Additionally, he said MAA members are continuing their aggressive promotional strategies, providing value-added services and more options to customers.

These efforts are anticipated to improve demand and contribute positively to the overall sales forecast.