The Importance of Having a National Car Like Malaysia, Maintaining Competitiveness

KatadataOTO – Car sales in Malaysia are showing positive performance. It is even said to be able to surpass Indonesia in the second quarter of 2025.

Reporting from Nikkei Asia and Nationthailand on Friday (08/08), one of the driving factors for the four-wheeled vehicle market there is the national car.

Perodua and Proton are claimed to contribute up to 63 percent in the first half of this year. Allowing both to maintain their positions as market leaders.

Moreover, the Proton Saga and Perodua Alza have successfully competed with two Japanese products, namely the Toyota Vios and Honda City.

Photo : Proton

"These brands serve as a cushion or backbone that keeps production and sales volumes stable, even when non-national brands fluctuate," said Yannes Martinus Pasaribu, an automotive expert and academic from the Bandung Institute of Technology (ITB), to KatadataOTO on Friday (08/09).

Yannes explained that these two national cars are pillars of sustainable industrial development.

This is because Proton and Perodua provide products with prices that are very suitable for the purchasing power of the middle class in Malaysia.

"This affordability keeps domestic demand solid and not too sensitive to economic shocks," he continued.

Unfortunately, this has been overlooked in Indonesia. The fate of the national car in the country has been less fortunate.

He then stated that the domestic four-wheeled vehicle market still depends on investment from foreign brands and principals.

"Although they have built a strong ecosystem, now (manufacturers in Indonesia) are facing intense pressure from newcomers focused on a price war," Yannes added.

For your information, Indonesia previously had several national car projects.