KUALA LUMPUR: The Malaysian Automotive Association (MAA) is maintaining its full-year total industry volume (TIV) forecast of 780,000 units for 2025, despite a 4.6 per cent year-on-year decline in vehicle sales during the first half of 2025 (1H 2025).
The forecast comprises 724,000 units for passenger vehicles and 56,000 units for commercial vehicles.
Its chief operating officer, Muhammad Fateh Teh Abdullah, said a total of 373,636 vehicles were registered in 1H 2025, compared to 391,451 units in the corresponding period last year.
"MAA is maintaining the forecast announced in January. The factors we considered include the outlook for the domestic economy.
"Yes, there are many challenges currently affecting the economy. However, when we look at the latest forecasts issued by several research houses, particularly following the United States’ imposition of a 25 per cent tariff, we remain cautiously optimistic,” he said.
He was speaking at the Review of Motor Traders and Manufacturers' Performance for 1H 2025 held here today.
Muhammad Fateh pointed out that research houses have indicated a general TIV decline of about 0.5 per cent.
He attributed the first-half slowdown to several key factors, including the high base effect from the record TIV of 816,747 units in 2024, as well as advance purchases made in December last year.
"In December 2024, MAA recorded the highest-ever monthly TIV of 81,735 units. This was followed by a drop in sales in January this year, with only 50,397 units sold compared to 66,919 in January 2024.
"The removal of the diesel subsidy in June 2024 also negatively impacted the commercial vehicle segment, with demand falling 21 per cent in 1H 2025,” he shared.
In terms of production, total industry output declined by 10 per cent to 352,626 units in 1H 2025, with passenger vehicle production down 10 per cent and commercial vehicle production dropping by 12 per cent.
He also noted that electric vehicle (EV) demand is expected to increase this year, spurred by new model launches, particularly in the fourth quarter, and aggressive promotional campaigns by MAA members.
"The sport utility vehicle (SUV) segment contributed the most to volume growth in 1H 2025, with nearly 100,000 units registered compared to 95,000 units in the same period last year,” he said.
He added that when combining hybrid and EV sales within the SUV segment, total sales were approximately 36 per cent higher than in 1H 2024, with 30,573 units sold in the same period this year.
The recent 25 basis point overnight policy rate cut by Bank Negara Malaysia is also expected to support consumer spending and vehicle purchases.
MAA further highlighted that the outlook for the domestic economy remains resilient, with gross domestic product growth projected between 3.5 per cent and 4.5 per cent, despite external pressures such as higher global tariffs. - Bernama
