Malaysia's 2024 Car Sales Growth Strategy, Can Be Emulated

KatadataOTO – Amidst the decline in domestic car sales, Malaysia actually experienced a 2.1 percent year-on-year increase. For the first time, in 2024 they managed to reach 816,747 units, with the largest contribution coming from the passenger vehicle segment.

This is in stark contrast to Indonesia and Thailand. In Indonesia, the decline was felt due to various factors such as the political elections and the rise of the rupiah exchange rate in certain periods.

As a result, many consumers postponed their purchases. Entering 2025, the challenges have not stopped, as there will be a VAT increase to 12 percent plus an additional local tax in several regions.

Meanwhile in Thailand, as of November 2024, their sales figures were reported to have dropped by 31.34 percent year-on-year, marking a consecutive decline for eight months in a row.

Photo : Courtesy

It is possible that Malaysia could lead the ASEAN automotive market in the future. There are strategies being implemented by the government to boost Malaysia's national car sales.

One of them is the government's policy through the National Automotive Policy 2020. There, the automotive sector is targeted to contribute 10 percent to the GDP by 2030.

Then, a number of incentives are provided in the automotive industry as well as additional low-interest credit programs for vehicle financing.

In addition, Malaysia also has a grand design or roadmap, namely the New Industrial Master Plan 2030. In it, they have a number of targets in the automotive industry, including building a supply chain to support the development of electric cars.

Indonesia is also considered to need to implement a similar strategy if it wants to maintain its car sales position in ASEAN and invite more investors to the country.

This is because a roadmap can provide an overview for manufacturers and investors about the long-term targets and strategies that the government will implement.