Malaysia to seize the largest car market in Southeast Asia by October 2025

KatadataOTO – Malaysia has successfully seized the position of the largest car market in Southeast Asia in October 2025. They recorded sales of 75,992 units to the market.

This figure is even 30 percent higher than their achievement in the previous month. In September 2025, they only managed to sell 71,685 units.

In total, from January to October 2025, they successfully sold 655,328 units. This number has decreased compared to the same period last year, which recorded 667,568 units.

The high sales figures are estimated to be due to an increase in demand for CBU electric cars. This is because in 2026, tax incentives will be discontinued.

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In addition, manufacturers are also offering various attractive promotions towards the end of the year, making it easier for the public to make purchases.

This situation is expected to continue in November 2025.

Meanwhile in Indonesia, wholesales in October 2025 were only 74,019 units. This number grew compared to the previous month's 62,077 units.

Then, the number of car shipments from factories to dealers from January to October 2025 was 635,844 units. This figure is down 10.6 percent compared to the same period last year, which recorded 711,064 units.

A Concern for Many Parties

Indonesia's car sales figures being surpassed by Malaysia has actually been a concern for several manufacturers, as there are several risks to be faced in the future.

“If the number 1 market in Southeast Asia is no longer in Indonesia, there are concerns the ecosystem will move. Especially since other countries are providing many conveniences, such as Vietnam, which lowered its VAT from 10 to 8 percent,” said Bob Azam, Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN).

This situation has also become a concern for the government. Agus Gumiwang Kartasasmita, the Minister of Industry, revealed that the automotive industry must receive incentives in order to grow.

“Automotive incentives, in my opinion, are a necessity, because it is a sector that is too important,” he asserted.

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According to him, many people are involved in the industry, so its growth will affect the economy as a whole.

However, the Minister of Industry is still reluctant to explain in detail the type or scheme of incentives that will be provided to the automotive industry later.