Projection of Malaysia’s Automobile Market in 2024

Malaysia’s automobile sales in 2023 are forecast to increase by 8% from the previous year to 780,000 units. Due to the sales of vehicles eligible for the automobile sales tax reduction/exemption, which was available until March 2023, sales from January to March of 2023 increased by 20% compared to the same period of 2022 to 192,000 units. Local automaker Perodua, led the market with sales of 267,000 units from January to October of 2023, an increase of 20%. The average inflation rate in Malaysia in 2023 was around 2% as of November. The core inflation rate decreased by 1.0 point from 2.9% to 1.9% from the first quarter to the third quarter, so the stable economy with low prices is thought to have contributed to the high level of unit sales.

In 2024, the economy is expected to improve due to increased wages for manufacturing industry workers, creation of employment opportunities, and infrastructure investment announced in the budget proposal in line with the 2030 New Industrial Master Plan. However, the automobile market in 2024 is expected to decline by approximately 4% compared to the 2023 forecast, to around 750,000 units, due to the end of sales tax exemption measures in 2023. However, since consumer prices are stable and nominal GDP per capita is expected to be around 13,000 USD, the market is not expected to fall sharply, and sales are expected to maintain a high level.

On the other hand, motorcycles ownership in 2022 stood at 496 units per 1,000 people. From December 8, 2023, the government began a policy to refund up to 2,400 MYR to buyers with an annual income of less than 120,000 MYR. This measure is expected to increase electric motorcycle sales.