MAA said y-t-d, total sales declined 14% to 113,056 units from 131,938 units in the same period last year.
PETALING JAYA: Malaysia’s weaker year-to-date (y-t-d) vehicle sales could signal the start of a slowdown after several years of record-high demand since the Covid-19 pandemic.
The Malaysian Automotive Association (MAA) said in a statement yesterday that y-t-d, total sales declined 14% to 113,056 units from 131,938 units in the same period last year.
Passenger vehicle sales were down by 12% y-t-d, with 105,934 units sold compared to 120,937 units a year ago while commercial vehicle sales experienced a sharper drop, falling 35% to 7,122 units from 11,001 units.
An industry observer told StarBiz that while the country’s vehicle sales, or also known as total industry volume (TIV), has been on an upward trend since the pandemic, sustaining continuous growth may become increasingly difficult.
Malaysia’s vehicle sales have been growing in recent years, with 508,911 units sold in 2021, 720,658 units in 2022 and 799,731 units in 2023.
In 2024, full-year vehicle sales climbed 2% to 816,747 units, surpassing the 800,000 mark for the first time.
This set yet another record and positioned Malaysia’s as the second-largest vehicle market in Asean for the second consecutive year, behind Indonesia.
“At some point, there has to be a correction. Consumers may feel they’ve bought enough cars, and perhaps we’re seeing the start of a slowdown,” he said, adding that with 10 months remaining in the year, it is still too early to draw firm conclusions.
The observer expected national brands to continue to lead the industry, benefiting from their affordability and the expectation that their buyers will receive targeted fuel subsidies.
Meanwhile, non-national brands face growing challenges, particularly with the rising presence of Chinese automakers.
“The non-national market is in a brutal price war, with competition intensifying not just in electric vehicles but also in internal combustion engine models,” he said.
The entry of more Chinese brands into Malaysia is further heightening competition, the observer added.
He said economic uncertainty is also weighing on demand, with many consumers adopting a wait-and-see approach before committing to big-ticket purchases like cars.
While the outlook for the first quarter remains cautious, the industry observer said the coming months would provide a clearer picture of whether this is a temporary dip or the start of a more prolonged slowdown.
Malaysia’s total vehicle sales fell 2% year-on-year (y-o-y) in February 2025 to 63,906 units from 65,017 units, mainly due to a sharp drop in commercial vehicle sales.
Commercial vehicle sales declined by 24% to 3,717 units from 4,873 a year earlier, while passenger vehicle sales remained relatively flat at 60,189 units compared to 60,144 in February 2024.
Despite the decline in overall sales, MAA noted that TIV “recovered” in February 2025, increasing by 31% compared to January’s 48,732 units.
The recovery was attributed to market stabilisation after a weak start to the year.
Looking ahead, MAA expects vehicle sales to improve in March 2025, driven by customers rushing to take delivery of their vehicles before the Hari Raya holidays and companies pushing to clear stocks before the financial year-end on March 31.
“The month of March is historically known as a high sales month,” it noted.
In contrast, the first quarter of financial year 2024 saw total vehicle sales of 202,245 units, with 184,994 passenger vehicles and 17,251 commercial vehicles sold.
The production side of the industry also recorded a decline in February 2025, with total vehicle production falling 7% y-o-y to 61,545 units from 66,464 units.
Passenger vehicle production dropped 7% y-o-y to 58,606 units from 62,788, while commercial vehicle production saw a sharper decline of 20% y-o-y to 2,939 units from 3,676. Y-t-d, total vehicle production stood at 118,444 units, down 17% from 143,516 in the same period last year.
Passenger vehicle production fell 17% y-o-y to 112,400 units from 135,429 during the period, while commercial vehicle production declined 25% y-o-y to 6,044 units from 8,087.
