KUALA LUMPUR: The Malaysian Automotive Association (MAA) is maintaining its full-year total industry volume (TIV) forecast of 780,000 units for this year despite a 4.6% year-on-year decline in vehicle sales during the first half (1H25).
The forecast comprises 724,000 units for passenger vehicles and 56,000 units for commercial vehicles.
MAA chief operating officer, Muhammad Fateh Teh Abdullah, said a total of 373,636 vehicles were registered in 1H25, 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 imposition of a 25% tariff by the United States, we remain cautiously optimistic,” he said.
He was speaking at the Review of Motor Traders and Manufacturers’ Performance for 1H25 event yesterday.
Muhammad Fateh pointed out that research houses have indicated a general TIV decline of about 0.5%.
He attributed the first-half slowdown to several key factors, including the high-base effect from the record TIV of 816,747 units last year, as well as advance purchases made last December.
“Last December, 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 with 66,919 in January 2024.
“The removal of the diesel subsidy last June also negatively impacted the commercial-vehicle segment, with demand falling 21% in 1H25,” he said.
In terms of production, total industry output declined by 10% to 352,626 units in 1H25, with passenger vehicle production down 10% and commercial-vehicle production dropping by 12%.
He also noted that demand for electric vehicles is expected to increase this year, spurred by new model launches, particularly in the fourth quarter, and aggressive promotional campaigns by MAA members.
The recent 25 basis point but to the overnight policy rate by Bank Negara 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% and 4.5%, despite external pressures. — Bernama
