KUALA LUMPUR (Jan 16): Malaysia's new motor vehicle sales are expected to decline by 7.5% in 2024, said the Malaysian Automotive Association (MAA), following record sales of 799,731 units in 2023.
Total industry volume (TIV) in 2023 reached an all-time high following an 11% year-on-year jump from 721,177 units in 2022 — marking two consecutive years of sales closing above the 700,000 mark.
MAA president Mohd Shamsor Mohd Zain attributed the higher annual TIV in 2023 to successful tax-free car bookings, increased socio-political stability, a strong domestic economy, successful launches of new models, including affordable electric vehicles, and improved industry supply chain conditions.
For 2024, MAA's weaker forecast is due to several factors, including global economic uncertainty due to conflicts and geopolitical tensions, and a slight slowdown in global economic growth forecasted by the International Monetary Fund to 2.9% in 2024 from 3% in 2023.
Factors that would support sales in 2024 are improved supply chains and ongoing new model launches, including many new electrified vehicles (xEV), at affordable and competitive prices, which will entice and sustain buying interest among consumers.
In addition, Shamsor said the decision by Bank Negara Malaysia to maintain the benchmark overnight policy rate at 3% is also favourable, keeping loan borrowing costs stable, which bodes well for the industry.
"However, consumer spending may slow down due to concerns over targeted subsidy rationalisation, the high cost of living, implementation of the proposed high-value goods tax, and higher service tax rates for some services, including motor vehicle repair and maintenance," Shamsor said.
Out of the 799,731 units recorded in 2023, Perodua led with 330,325 units, followed by Proton (150,975 units), Toyota (106,206 units), Honda (80,027 units), Mitsubishi (21,719 units), and others (110,479).
While Perodua continued to lead the charts, Proton's sales in 2023 was its best in just over a decade, and marked its fifth consecutive year of growth, from around 141,000 in 2022.
During the year under review, both the passenger car and commercial vehicle segments also recorded high sales growth. Passenger vehicles rose by 12% or 77,003 units to 719,160 units from 642,157 units in 2022, while commercial vehicles saw new registrations rise to 80,571 units in 2023 from 79,020 units in the previous year.
Monthly TIV also saw an increase of 7% to 78,398 units, compared to 73,242 units in November 2023.
On the total industry production (TIP) of new vehicles in 2023, Shamsul said it also saw an increase of 10% or 72,325 units to reach a total of 774,600 units compared to 702,275 units in 2022. This marks the second consecutive year the TIP exceeded the 700,000 units mark.