According to foreign media reports, data released by the Malaysian Automobile Association (MAA) on July 16 shows that Malaysia will increase in the first half of 2025Automotive productiondecreased by 10.1% year-on-year to 352,626 units from 392,220 units in the same period last year. Commercial vehicle production decreased by 11.9% y/y to 18,775 units; Passenger car production decreased 10.2% y/y to 333,212 units.
The Malaysian Automobile Association said in a press release: “In the first half of 2025, the total number of automobilesyieldThe decline is in line with the shrinking demand for new cars in the market. ”
Image source: Toyota Malaysia
From January to June this year, MalaysiaCar salesIt also fell 4.6% year-on-year to 373,636 units, reversing last year’s growth trend, and in 2024, the country saw a record high of 816,000 vehicles.
In the first half of the year, Malaysia’s commercial vehicle sales fell sharply by 21% year-on-year, while passenger car sales fell by 3%. The Malaysian Automobile Association explained that this contraction stemmed from the government’s removal of diesel subsidies in June 2024.
Despite the decline in sales in the first half of the year, the Malaysian Automobile Association maintained its full-year sales forecast of 780,000 units. thisforecastThis is based on three supporting factors: the continued recovery of Malaysia’s domestic economy, the country’s central bank recently lowered its benchmark interest rate to 2.75%, and the active promotions of major car companies.
It is worth noting that Malaysia’s first half of the yearElectric vehicleThe market bucked the trend. From January to June, sales of electrified models, including hybrids, increased by 35.6% year-on-year to 30,573 units. Sales of sports utility vehicles (SUVs) also increased slightly, making it the only segment among conventional models to achieve sales growth.
Mohamad Shamsor, president of the Malaysian Automobile Association, said that the current penetration rate of electric vehicles in the country is still low. “From a long-term forecast, this proportion is still low. The government aims to make electric vehicles account for 15% of total vehicle sales by 2030. ”
However, the US government plans to impose a 25% import tariff on China-related goods, including Malaysian-made cars and parts, which will bring new challenges to Malaysia’s automotive industry.
Shamsor said the main affected area will be auto parts exports. According to the data, Malaysia’s auto parts exports to the United States in 2024 will be nearly $100 million, accounting for 80% of the country’s total automobile exports to the United States (excluding rail vehicles and special vehicles).