Amanda Siddharta
Research expert covering Malaysia
Automotive Industry in Malaysia - Statistics & Facts
With a sales volume of nearly 800,000 motor vehicles, the Malaysian automotive industry is the second largest among other ASEAN countries, after Indonesia. The automotive sales market in Malaysia, with its approximately 33 million inhabitants, is relatively small. After the industry had experienced a decline for two years in a row due to the COVID-19 pandemic, the Malaysian automotive market continued to grow by nearly 12 percent in 2023. Despite the recovery, it is unlikely that Malaysia would take over the other two ASEAN countries with much larger automotive markets.
Passenger cars are the most popular vehicles in Malaysia. They held the largest market share, and sales of passenger cars reached more than 440,000 units. SUVs were the second most popular car segment, with more than 213,000 units sold in the same year.
Perodua and Proton ranked first and second among the bestselling car brands in the country. The national brands’ success is also due to their flagship models. For example, the Proton Saga was responsible for almost half of the company’s sales volume.
Through incentives and the plan to install 10,000 EV charging points by 2025, the EV sector might become one of the leading sectors in the Malaysian automotive industry. Nevertheless, it would take a while before it can overtake conventional passenger cars in the Malaysian market.
Passenger cars are the most popular vehicles in Malaysia. They held the largest market share, and sales of passenger cars reached more than 440,000 units. SUVs were the second most popular car segment, with more than 213,000 units sold in the same year.
Malaysia's local automotive manufacturers
Malaysia is the only country in Southeast Asia that has two of its own well-known car brands. While other Asian markets are dominated by Japanese car manufacturers, the dominance of the Malaysian market is shared by the two national manufacturers, Proton and Perodua. For many decades, Malaysia's automobile policy was characterized by protectionist measures aimed at promoting the two manufacturers until they were internationally competitive.Perodua and Proton ranked first and second among the bestselling car brands in the country. The national brands’ success is also due to their flagship models. For example, the Proton Saga was responsible for almost half of the company’s sales volume.
EVs, the future of Malaysia’s automotive industry
Although Malaysia is not as advanced as other countries in the adoption of electric vehicles (EVs), the Malaysian Automotive Association (MAA) believes that the EV segment will continue to grow. In 2023, there was an increase by approximately 280 percent in the EV sales volume in Malaysia. EVs are also exempted from import and excise duties until 2024.Through incentives and the plan to install 10,000 EV charging points by 2025, the EV sector might become one of the leading sectors in the Malaysian automotive industry. Nevertheless, it would take a while before it can overtake conventional passenger cars in the Malaysian market.
