Amanda Siddharta
Research expert covering Malaysia
Automotive Industry in Malaysia - Statistics & Facts
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Owning a car is considered a necessity for many Malaysians, especially those who reside in the urban areas. A 2023 survey showed that more than half of respondents preferred to travel with a private car. With two Malaysian car brands, the country was the second-largest automotive market in ASEAN in 2023, after Indonesia. Although the industry experienced a sharp decline for two years in a row due to the COVID-19 pandemic, the Malaysian car industry quickly recovered and reached its highest passenger vehicle sales volume in 2024.
Passenger cars like sedans were the most popular types of vehicles in Malaysia, with more than 440,000 units sold in 2023. Sports utility vehicles, or SUVs, were the second most popular car segment, with more than 213,000 units sold in the same year.
Historically, Perodua has been using Japanese engineering in its car models because of its cooperation with Daihatsu. The brand is owned by UMW Holdings, which also owns UMW Toyota Motor, the official distributor of Toyota cars in Malaysia. As a result, Perodua has been securing the top spot in car sales, with more than 358,000 units sold in 2024. In that same year, Sime Darby, a Malaysian trading conglomerate, completed its full acquisition of UMW Holdings.
Proton, on the other hand, has been trailing behind its competitor. Although the company manufactures both locally engineered and badge-engineered cars based on Mitsubishi design, Proton’s sales number has been lackluster compared to Perodua. The national car manufacturer, famous for its Saga model, sold around 152,000 cars in 2024, a slight decrease from the previous year.
Through incentives and the plan to install 10,000 EV charging points by 2025, the EV sector might become one of the leading sectors in the Malaysian automotive industry. Nevertheless, it would take a while before it could overtake conventional passenger cars in the Malaysian market.
Passenger cars like sedans were the most popular types of vehicles in Malaysia, with more than 440,000 units sold in 2023. Sports utility vehicles, or SUVs, were the second most popular car segment, with more than 213,000 units sold in the same year.
Malaysia's local automotive manufacturers
While other markets in Southeast Asia are dominated by international car manufacturers, the largest market share of the Malaysian automotive industry is led by the two national manufacturers, Perusahaan Otomobil Kedua (Perodua) and Proton Holdings. The country introduced the National Automotive Policy in 2006 as a protectionist measure to strengthen and rapidly expand these two car brands.Historically, Perodua has been using Japanese engineering in its car models because of its cooperation with Daihatsu. The brand is owned by UMW Holdings, which also owns UMW Toyota Motor, the official distributor of Toyota cars in Malaysia. As a result, Perodua has been securing the top spot in car sales, with more than 358,000 units sold in 2024. In that same year, Sime Darby, a Malaysian trading conglomerate, completed its full acquisition of UMW Holdings.
Proton, on the other hand, has been trailing behind its competitor. Although the company manufactures both locally engineered and badge-engineered cars based on Mitsubishi design, Proton’s sales number has been lackluster compared to Perodua. The national car manufacturer, famous for its Saga model, sold around 152,000 cars in 2024, a slight decrease from the previous year.
EVs, the future of Malaysia’s automotive industry
Although Malaysia is not as advanced as other countries in the adoption of electric vehicles (EVs), the Malaysian Automotive Association (MAA) believes that the EV segment will continue to grow. In 2024, there was an increase of approximately 45 percent in the EV sales volume in Malaysia. EVs are also exempt from import and excise duties until 2025.Through incentives and the plan to install 10,000 EV charging points by 2025, the EV sector might become one of the leading sectors in the Malaysian automotive industry. Nevertheless, it would take a while before it could overtake conventional passenger cars in the Malaysian market.
Amanda Siddharta
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Feb 12, 2025
Amanda Siddharta
Research expert covering Malaysia
