KUALA LUMPUR (Dec 26): Malaysia’s automotive sector will have to contend with weaker sales of non-national cars amid intensifying competition, while the industry grapples with easing backlog orders, RHB Investment Bank flagged.
The entry of Chinese brands may erode market shares of incumbents, the research house said in a note. Some car buyers may postpone their purchases in anticipation of further price cuts from both existing and new marques, which would also destabilise the non-national segment, the house noted.
“We remain cautious in our outlook for next year, given the ongoing price competition between the non-national marques,” RHB IB said. “Softening order backlogs also indicate toned-down expectations for 2025.”
Total industry volume (TIV), or new car registrations, weakened month-on-month in November, according to the Malaysian Automotive Association. Major carmakers charted softer sales led by Toyota, which declined 6.7% month-on-month, followed by Perodua that dipped 5.7%.
Consumers are also reportedly adopting a wait-and-see approach, ahead of petrol subsidy rationalisation planned for mid-2025 that could raise costs of living.
Overall, TIV could fall 8% in 2025 to 730,000 units next year, versus 790,000 units projected for this year, according to RHB IB’s forecasts.
“We are anticipating a softer TIV as the high-base effect kicks in, and do not see any compelling factors for 2025 auto sales to be maintained at the current elevated levels,” the house added.