Kia EV9 electric vehicle. Bermaz Motor executive chairman Tan Sri Ben Yeoh (left) with Kia Apac president and chief executive officer Kiseok Ahn.
PETALING JAYA: Following a record-breaking 2024 in terms of vehicle sales, car companies are anticipating competition within the automotive industry to intensify even more this year.
As they fight for a bigger slice of the profit pie, automotive players will be banking on the strengths of their brands, extensive distribution network and robust after-sales services.
Bermaz Auto Bhd
(BAuto) executive chairman Tan Sri Ben Yeoh believes that the domestic automotive market this year will be “very challenging”.
“There is a build-up of inventory carried over from 2024 and this will lead to heavy price discounting. There will also be new models, especially Chinese brands, being introduced when they secure governmental approvals for imports and local assembly,” he told StarBiz.
BMW Group Malaysia managing director Benjamin Nagel believes that as the country continues its journey toward electrification, the automotive market in 2025 will be poised for significant growth in the electric vehicle (EV) segment.
This, he said, will be driven by rising consumer demand for sustainable mobility solutions and ongoing government initiatives to drive the transition forward.
“This growth comes with increased competition with the entry of new EV players into the Malaysian market.” Nagel, nevertheless, said BMW Malaysia welcomes the competition.
“We welcome and view this growing competition within the Malaysian EV market as a positive sign that the segment is maturing, and as a catalyst that pushes the industry forward.
“It challenges us to achieve breakthroughs that would ultimately come to benefit our customers and the automotive industry as a whole,” he said in a reply to StarBiz.
With the exemption of import duty and excise duty on completely-built-up EVs slated to end by the end of the year, Nagel believes that market dynamics are expected to shift towards greater emphasis on local assembly.
“As such, we are also actively in close dialogue with the government to explore long-term plans for the local assembly of our EVs.”
Sime Motors Sdn Bhd, the official distributor of BYD vehicles in Malaysia, is optimistic about the prospects of the EV market in the country.
Sime Motors South-East Asia managing director Jeffrey Gan noted that EV adoption in Malaysia has gained significant momentum, with sales rising by an impressive 45% in 2024.
“This surge is fuelled by growing environmental awareness, government incentives and improved charging infrastructure. These factors are expected to spur greater adoption in 2025,” he said.
Gan said the group’s performance continued to see resilient growth in 2024, particularly driven by the premium and the EV segments which made up 34% of overall sales.
“Sime Motors has been pivotal in driving the transition towards EV transformation. BYD’s diverse line-up of vehicles emphasising innovation, cutting-edge technology and accessibility has resonated strongly with Malaysian consumers.
“The combination of BYD’s strengths and Sime Motors’ extensive distribution network and robust after-sales care ensures that we are well-positioned to meet evolving consumer needs.”
Nevertheless, Gan said a key challenge in the EV segment includes the development and accessibility of charging infrastructure, which remains a factor for consumers considering the switch to EVs.
“Expanding the network of EV charging stations and continuing to improve coverage across the nation are critical to sustaining EV adoption.”
Supported by government policies, advancements in charging infrastructure and increasing consumer confidence, Gan remains optimistic about the market’s long-term prospects.
“Over the past couple of years, BYD vehicle sales have seen significant growth, reflecting the rising interest in electric mobility. We anticipate strong sales, supported by expanded showrooms and increased consumer awareness will continue in 2025, bolstered by the government’s ongoing commitment to EV adoption, which is in line with global trends.
“Our diverse portfolio, proven track record of strong capabilities and strategic growth plans position us well to adapt to the evolving landscape and cater to the diverse needs of the Malaysian market,” he said.
Total industry volume (TIV) rose 2.1% year-on-year in 2024 to surpass the 800,000-mark for the first time.
According to the Malaysian Automotive Association (MAA), vehicle registrations hit 816,747 units last year to surpass the previous all-time-high of 799,821 units sold in 2023.
The MAA has projected TIV to normalise to 780,000 units in 2025.
Yeoh said BAuto’s performance last year was within expectations. He noted that there was an “influx of many new Chinese brands with very competitive price-points” in 2024.
“BAuto sold a total of 14,500 Mazda units and 2,300 Kia and X-Peng vehicles combined, last year.
“For 2025, we hope to maintain the similar sales volume as we recorded last year. We plan to introduce a couple of new Mazda models, including new Kia models and a few new Chinese brands to complement our existing range of brands.”
Nagel meanwhile said BMW Malaysia strengthened its leading position as Malaysia’s number one premium automaker for another successful year in 2024, with over 13,500 units of BMW, Mini and BMW Motorrad vehicles delivered.
“This performance is on par with our strategy for Malaysia and mirrors the BMW Group’s performance worldwide.
“The BMW brand alone saw over 10,500 vehicles delivered to new owners in 2024. The Mini portfolio contributed over 1,400 vehicle deliveries, while the BMW Motorrad brand delivered over 1,600 units of our premium motorcycles.”
Nagel added that the company also strengthened its battery electric vehicle (BEV) offerings last year, achieving a total delivery of over 2,700 BEVs across its BMW, Mini and BMW Motorrad portfolios.
He emphasised that the company’s priority for 2025 is to maintain its leadership position as the number one premium electric vehicle provider in Malaysia.
Going forward, Gan said Sime Motors plans to actively expand its EV portfolio across its brands, elevating sustainability from sales to ownership experiences and supported by comprehensive BYD aftersales services.
“We are committed to maintaining strong growth in Malaysia in 2025. Our goal is to consistently increase EV adoption and expand our customer base by delivering innovative and reliable models.
“We will also support the growth of the EV sector by working closely with partners and stakeholders to enhance the infrastructure and awareness.”
Meanwhile, local carmakers Perusahaan Otomobil Kedua (Perodua) and Proton Holdings Bhd are expecting their strong sales performance last year to carry into 2025, underpinned by the popularity of their core models.
Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad believes 2025 will offer both new challenges and opportunities, as well as increased competition from newer automotive brands in the market.
Despite these challenges, he said Perodua remains ready to continue its role in charting the way forward for the automotive industry.
Perodua’s sales in 2024 scaled to a record level of 358,102 units, on the back of the company’s highest-ever production volume of 368,100.
The national carmaker’s 2024 sales were 8.4% higher than its previous historical high of 330,325 in 2023, while production rose 7.2% over its 2023 level of 343,400.
Meanwhile, Proton closed out 2024 on a high note after selling 152,352 units (domestic and export), earning the national carmaker second place once again in the sales ranking table for last year.
Looking ahead to 2025, Proton Edar chief executive officer Roslan Abdullah said in a statement that the national car company will build on the continued popularity of its Proton Saga, as well as SUV models like the X50 and X70.
“These are all positives to carry into the new year and we look forward to growing the company in line with our core brand values of innovation, reliability and international,” he said.
Going into 2025, most analysts are expecting vehicle sales to ease.
RHB Research expects TIV to soften as the high base effect kicks in.
“We do not see any compelling factors for 2025 auto sales to stay at the current elevated levels. We think the decline will mainly be due to the non-national marques, which continue to face intensifying competition as a result of new entrants, mainly the China carmakers.
“The influx of new models flooding the market with heavy price discounting may prompt buyers to delay purchases in anticipation of further price cuts from both existing and new non-national marques, thereby destabilising the non-national segment.”
While EVs are not spared from competition with the rise of new models, RHB opines that their popularity remains limited, mainly due to pricing – with the completely-built-up units subject to a RM100,000 price floor.
The research house is projecting a 11% year-on-year dip in TIV to 730,000 units for 2025.
Meanwhile, MIDF Research foresees a gradual easing of TIV in 2025 after years of elevated backlog. The research house is projecting a 3% year-on-year drop in TIV to 792,000 units.
“This is broadly consistent with the MAA’s forecast of 780,000 units. It is worth noting that the order backlog for Perodua has declined to 90,000, down from 128,000 at the end of 2023, with a similar trend observed across other major marques.
“Several positive factors to consider include the minimum wage increase to RM1,700 (effective February 2025), the recent public servant salary revision of up to 15% and the overnight policy rate, which has been maintained at 3%.”
The research house said this year’s focus will be on rationalising RON95 fuel subsidies in mid-2025.
“We believe this group is more likely to transition to electric or hybrid vehicles.”
Bucking the trend, Kenanga Research expects TIV to expand marginally to 805,000 units this year.
“This is backed by a volume-driven affordable segment, attractive new launches replacing older generation vehicles, a downtrading trend by mid-market buyers amidst the fuel subsidy rationalisation and rising market share of Chinese vehicles,” it said.
