Malaysia's Car Sales Rise in 2024, Nearing Indonesia

KatadataOTO – Car sales in Malaysia in 2024 increased by 16,926 units or 2 percent to 816,747 units. Meanwhile, in 2023, the country only managed to sell 799,821 units.

The high sales figures make it the second-largest car market in Southeast Asia. Impressively, they have held the second position since 2023 after surpassing Thailand.

Malaysia even has the potential to surpass Indonesia, which is currently the country with the largest automotive market. This is because the car market in the country is currently under pressure.

It should be noted that passenger vehicle sales in Malaysia in 2024 increased by 4 percent to 747,180 units. Meanwhile, the commercial vehicle market fell by 14 percent to only 69,567 units due to the removal of diesel subsidies in June 2024.

Photo : KatadataOTO

Meanwhile, total vehicle production in the country last year rose by 2 percent, to 790,347 units compared to 774,600 units in 2023.

The high number of passenger vehicle sales in Malaysia was driven by economic growth, as indicated by an increase in GDP. Additionally, the unemployment rate in the country was only 3.2 percent, the lowest level in the last 10 years.

The central bank also maintained lending rates, making it easier for people who want to buy vehicles. As a result, the order backlog, especially for entry-level vehicles, has grown significantly.

However, the vehicle market is expected to decline by 4.5 percent to only 780,000 units in 2025. This is because the passenger car market is predicted to weaken by 5 percent to just 710,000 units.

Meanwhile, commercial vehicles are expected to increase to 70,000 units. 

Indonesian Car Market

Meanwhile, the Indonesian car market experienced a significant decline in 2024, as vehicle wholesales from January to December only reached 865,723 units. That number is 140,079 units, or about 13.9 percent smaller than the previous achievement of 1,005,802 units.

Nevertheless, this figure is still considered to meet Gaikindo's target after it was revised to 850,000 units from the previous 1 million units.

Photo : Courtesy

Entering 2025, the automotive industry will still face challenges. Starting from the implementation of a 12 percent VAT, a surcharge on PKB (Motor Vehicle Tax), and a surcharge on BBNKB (Vehicle Title Transfer Fee).

Therefore, Gaikindo has set the 2025 car sales target at 850,000 units. This comes with a potential downward correction to 750,000 but also a chance to rise to 900,000 units.