Malaysia’s Automobile Production Falls 15 Percent to 490,000 Units in 2020, Dropping to 2009’s Level

Malaysia's automobile production in 2020 fell 15.1% from the previous year to 485,000 units. The spread of new coronavirus infection reduced production to 2009’s level of 489,000 units, when production was hit by the Lehman Shock. In the wake of the pandemic, automobile production was temporarily suspended due to the implementation of the government’s “movement control order” in March 2020. As a result, automobile production in the first half of 2020 fell 41.7%. However, with the sales tax reduction and exemption measures on passenger vehicles that came into effect in June 2020, 100% tax exemption for CKD vehicles, 50% tax reduction for CBU vehicles and preferential treatment for CKD vehicles, production went up 11.2% to 319,000 units in the second half of 2020.

By vehicle type, passenger vehicles decreased 14.3% to 458,000 units. Production of passenger cars such as sedans and hatchbacks declined 12.5% to 342,000 units, while sales of SUVs fell 20.6% to 88,000 units. Commercial vehicles went down 26.9% to 27,000 units. Sales of medium and heavy trucks rose 6.1% to 3,697 units, but sales of light trucks fell 52.7% to 4,878 units.