KUALA LUMPUR: The total industry volume (TIV) for the Malaysian automotive market last year grew a further 0.5% over 2024 to 820,752 vehicles, which is another record high for the local automotive market.
According to the Malaysian Automotive Association (MAA), the results were driven by positive macroeconomic conditions, among other factors.
These included robust economic growth as the country’s gross domestic product grew by 4.7% in the first three quarters of last year, the stable social-political climate and positive labour market conditions, with the unemployment rate reaching an 11-year low of 2.9% in 2025.
The MAA said favourable financing conditions were also present in the second half of the year after the reduction of the overnight policy rate to 2.75%, which in turn improved vehicle-loan affordability.
Sales gathered momentum and ended the year strongly, with data from MAA showing the highest monthly total on record last December with 90,716 units sold, while the strongest quarter was the fourth quarter with 241,416 units.
This was the second time in history the monthly total surpassed the 80,000 mark with the previous record being in December 2024 at 81,735 units, it said.
Another reason for the growth last year was the large order backlogs that was seen particularly in the A-segment for entry-level vehicles, which contributed to a 0.4 percentage point increase in the market share of national makes to 62.3% of the total.
The MAA also said there were successful launches of new electric vehicle (EV) models, including offerings from national makes in the segment, which saw sales rising by 78%.
MAA’s forecast for this year is for a slight contraction of the total by 3.8% to 790,000 vehicles on various factors including potentially moderating economic growth from global trade uncertainties and inflationary pressures.
Other factors cited by the MAA include the expiry of tax incentives for imported EVs and potential changes to excise duty and pricing calculations, which could change vehicle prices.
Disposable income may also see some constraints due to the rising cost of living, which may weaken overall consumer purchasing power.
“While forecasts foresee business as usual, we expect slightly lower numbers. This also depends on the momentum of the business landscape and the promotions offered, which may impact the industry.
“In the final quarter everyone had their own strategy for doing business which pushed up sales.
“So the same may happen again this year,” MAA president Mohd Shamsor Mohd Zain said.
