Car sales in Malaysia to hit new high in 2023, says MAA

PETALING JAYA: Malaysia's automotive annual total industry volume (TIV) is forecasted to hit another record high in 2023, according to the Malaysian Automotive Association (MAA).

The association has revised its 2023 TIV forecast upwards by 11.5% - from 650,000 to 725,000 units.

In 2022, the country's automotive annual TIV hit an all-time high of 720,658 units.

MAA president Mohd Shamsor Mohd Zain said the revised TIV forecast was due to factors such as the country's stable economic outlook, new model launches that have been well received, continued aggressive promotional strategies by MAA members, and the central bank's recent decision to keep its key interest rate unchanged at 3%.

"However, we may see consumers’ spending softening in the remaining months, weighed down by worries over rising costs of living, shrinking disposable income, weakening ringgit against major foreign currencies, and uncertainties about the domestic and global economic environment," he said at a media briefing.

Mohd Shamsor also pointed out that sales of new motor vehicles continued to grow strongly in the first half of 2023, with TIV rising by 10.3% to 366,037 units (from 331,746 units a year earlier).

Sales of new passenger vehicles rose 11.2% to 326,661 units in the first half of 2023, while new commercial vehicles were up by 3.6% at 39,376 units.

"The new vehicles market has even surpassed pre-pandemic levels, rebounding strongly last year and again during the first half of 2023," he said.

Mohd Shamsor said the strong TIV in the first half was fuelled by factors such as an improved industry supply chain environment, new model launches with many attractive features and very competitive prices, and the resilient domestic economy.

"Also, there was fulfilment of bookings received during the Penjana sales tax exemption period last year, a majority of which were registered before March 31, 2023. A fair number of these bookings were also carried over and registered from April to June 2023," he added.

Mohd Shamsor noted that robust sales by the two national marques (Proton and Perodua) meant they constitute 68% of TIV in the first half of 2023 (from 63% a year earlier).

"During the first six months of 2023, the national marques sold 220,702 units (a 19% year-on-year increase). In contrast, non-national marques' sales of passenger vehicles dropped 3% to 105,959 units," he noted.