MALAYSIA'S Total Industry Volume (TIV) or vehicle registrations saw a new record high in 2024.

Sales of new motor vehicles surpassed the 800,000 units threshold to reach count of 816,747 units during the year under review.

This is a 2.1% rise over the previous highest TIV of 799,821 units achieved by the end of 2023.

The Malaysian Automotive Association (MAA) stated that the exceptional performance in 2024 can be attributed to a number of factors, namely: 
• Resilient domestic economy with the GDP growing at 5.2% in the first three quarters of 2024 compared to 3.8% same period in 2023; 
• The Overnight Policy Rate (OPR) remained at 3% since May 2023 provided a conducive environment for vehicle loans; 
• Stable socio-political environment provided stability in business and employment markets; 
• Positive employment market as unemployment rate hit decade low 3.2%;  
• High backlog orders particularly in A-segment, contributed to increase in National Makes share by 2% to 62% of TIV; 
• Successful new model launches with exciting features and latest technologies were well received by the market; 
• Surge in Battery Electric Vehicles (BEV) sales due to the tax incentives and introduction of new models and makes particularly from China. BEV sales rose 45% in 2024; and 
• Aggressive sales and promotional strategies organised by OEMs and distributors. 

MAA president Mohd Shamsor Mohd Zain said this outstanding TIV achievement would not have been possible if not for the much stable socio-political environment and the various measures undertaken by the government to stimulate the country’s economy leading to a higher GDP growth. 

"Such favourable conditions are essential for us in the automotive industry as this would enable Malaysians to be more optimistic of the economy and be more willing to spend including for purchasing of vehicles," he added.

Breakdown

In the year under review, only the passenger vehicles segment recorded increase in sales. The commercial vehicles segment however, registered lower sales.   

The total registration of new Passenger Vehicles in 2024 rose to 747,180 units from 719,145 units in 2023.  

This was an increase of 28,035 units or 3.9%. The high volume increase was largely due to the strong sales performances by the national makes particularly Perodua.  

As a result, the combined market share of national makes (within PV segment) rose to 67.7% (505,689 units) compared to 66.9% (481,300 units) in 2023. 

Meanwhile, the non-national makes registered a lower sales volume of 311,058 units or 2.3% decline compared to 318,521 units in 2023. Electrified vehicles or xEV accounted for 5.6% of the TIV compared to 4.8% of the TIV in 2023.  

The xEV sales jumped by 19% from 38,214 units in 2023, to 45,562 units with 14,766 units of BEV and 30,796 units of hybrid vehicles. 

MAA believes that the xEV demand will continue to grow this year as this will be the final year for the granting of full exemption of import and excise duties for imported EVs. 

The Commercial Vehicles segment however, registered lower sales of 69,567 units, a decline of 13.8% or 11,109 units.   

The decline in sales of commercial vehicles can be attributed to the removal of diesel subsidy in June 2024 which saw the demand for pick-up trucks reduced by 16.4%. The removal of diesel subsidy has somewhat affected the sales of pick-up trucks mainly from the lifestyle customers. 

On a year-on-year (y-o-y) basis, TIV was higher in 2024 for six months ie. January, February, April, May, July and December, compared to in 2023.   

The highest monthly TIV in the history was recorded in December 2024 at 81,735 units surpassing the 80,000 units mark for the first time. The previous record was 78,895 units achieved in March 2023.  

The Total Industry Production (TIP) of new vehicles in 2024 increased by 15,747 units or 2% to reach a total of 790,347 units compared to 774,600 units in 2023.   

Similar to TIV, this was an all-time high TIP.  

This big increase in production volume was in tandem with the higher overall sales in 2024.

TIV 2025 forecast

MAA is slightly more modest with this year's outlook following 2024's impressive figures.

The association puts 2025's TIV at 780,000 units which is 4.5% below last year's achievement by 36,747 units.

This is due to a predicted 5% drop in passenger vehicle sales (down 37,180 units to 710,000 vs 747,180) with a minor 0.6% (or 433 units) rise in commercial vehicle uptake (70,000 vs 69,567).

Their forecast comes about after taking the following factors under consideration:

1. The International Monetary Fund (IMF) had forecasted that global economic growth to improve marginally from 3.2% in 2024 to 3.3% in 2025. 
2. Malaysian economy continues to remain resilient. The government forecast GDP to grow within 4.5% to 5.5% in 2025, driven by higher private consumption and investment. 
3. Bank Negara maintaining the OPR at 3% in 2025 providing continued favourable support for demand of vehicles. 
4. Increase in minimum wage to RM1,700 from February 1, 2025, and salary revision for government servants up to 15%, would lead to increase in demand for vehicles.  
5. A stable labour market with low unemployment at 3.2%, suggests continued income security which supports vehicle purchases.  
6. Duties exemption for BEVs expiring end of 2025, is expected to create urgency for people to purchase BEVs.  
7. New brands and models would be introduced in the market creating excitement to the market. 
8. Promotional sales strategies and value-added services providing better options would excite the market. 
9. On the downside risk, the uncertainty surrounding US-China trade war, and the impact of the petrol subsidy rationalisation exercise on higher engine capacity vehicles, could affect the TIV volume this year. However, on the contrary, this may encourage the sales of xEVs.  
10. Limited charging bays for EVs especially in less developed States could hinder the widespread adoption of EVs and potentially reducing TIV growth.