KUALA LUMPUR, Jan 21: A total of 820,752 vehicles were sold in 2025, recording the second consecutive year of over 800,000 vehicles sold, the Malaysian Automotive Association said. This was a marginal rise from 816,747 vehicles sold in 2024.
At a press conference on Tuesday to highlight the automotive industry’s performance, challenges and prospects ahead, MAA President Mohd Shamsor Mohd Zain attributed the industry’s continued strong momentum in 2025 to the country’s robust economic growth, with GDP expanding by 4.7% in
the first three quarters of 2025, supported by strong domestic demand and recovering exports.
Other factors cited for the strong performance included favourable financing conditions, following the reduction of the Overnight Policy Rate (OPR) to 2.75% since July 2025, that made vehicle loans more affordable, as well as a stable socio-political environment, providing business confidence and
employment stability.
He also noted that an unemployment rate of 2.9%, as well as strong order backlogs, and the successful launch of new models and aggressive promotion campaigns contributed towards stronger sales particularly in the passenger vehicles.
Passenger vehicles growth was mainly driven by higher demand for SUV which grew by 13% to 228,572 units in 2025 compared to 201,565 units in 2024. Commercial vehicles on the contrary, continued to decline for the second year in a row since the removal of diesel subsidy in June 2024. In 2025, commercial
vehicles sales reduced by 11% compared to 14% drop in 2024.
On the outlook for the automotive market in 2026, he said downside risks will include Malaysia’s moderating economic growth, with GDP projected to grow between 4.0% to 4.5%, global uncertainties in US trade policies and ongoing geopolitical tensions.
Among others, he cited inflationary pressures, increasing manufacturing, component, and
operational costs as well as rising cost of living and its consequence on puchashing power among factors that could affect the industry performance.
Nevertheless, amid the challenges, he said factors that would support the market’s resilience include continued low unemploymndent, supporting income stability and consumer confidence and demand.
— WE