Malaysia auto gross sales hit all-time report in 2023 with 799,731 items, 11% up – 740k TIV forecasted for 2024

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Malaysia auto sales hit all-time record in 2023 with 799,731 units, 11% up – 740k TIV forecasted for 2024

The bounce again from Covid is actual, and really robust. The Malaysian Automotive Affiliation (MAA) introduced 2023 auto gross sales outcomes right now, and it’s an all-time report with near 800,000 items bought. The 799,731 items whole trade quantity (TIV) is 11% increased than the 721,177 items achieved in 2022, which was a report then.

That is the second annual TIV acquire because the downturn in 2020-2021 attributable to the Covid-19 pandemic. It’s additionally the second consecutive yr that TIV exceeded the 700,000 items mark. It’s the identical for whole manufacturing – up 10% to 774,600 items, an all-time excessive and the second consecutive yr above the 700,000 mark.

What’s behind the increase?

MAA mentioned that the report gross sales was propelled primarily by the passenger automotive sub-segment, amid a resilient home economic system and a really a lot steady socio-political setting. One of many greatest components was the fulfilment of SST-exempt bookings, a majority of which have been registered earlier than March 31.

Malaysia auto sales hit all-time record in 2023 with 799,731 units, 11% up – 740k TIV forecasted for 2024

Different components embody the launch of latest fashions, together with EVs with engaging costs (tax-free for CBUs) and a much-improved trade provide chain setting. The latter refers back to the elements provide challenge that plagued the trade post-Covid.

“Kudos to the federal government for steering the nation into a really a lot steady socio- political setting and reaching a lot progress. Such beneficial circumstances have enabled companies to thrive and succeed. On behalf of all MAA members, I want to specific our heartfelt and honest appreciation to the federal government of Malaysia for all of the help and help rendered to the automotive trade,” mentioned MAA president Mohd Shamsor Mohd Zain.

Diving deeper into the headline determine, whereas each passenger car and industrial car segments registered progress in 2023, it’s the previous that’s accountable for the report – the 719,160 items bought is a 12% improve, contributing 89.9% to the trigger.

Malaysia auto sales hit all-time record in 2023 with 799,731 units, 11% up – 740k TIV forecasted for 2024

Of all of the passenger bodystyles, it’s the MPV that grew probably the most (27.6%). That may be a shock, if not for the second-generation Perodua Alza, which had its first full yr of gross sales in 2023. Passenger automobiles grew by 11.2% and SUVs 9.7%. One car kind categorized as a CV however related to the carbuying public is the pick-up truck, which grew by a modest 1.5%.

Nationwide manufacturers, the engine of progress

MAA not releases gross sales figures by model, citing the Competitors Act, however they’re allowed to point out us the nationwide vs non-national break up, and unsurprisingly, the nationwide manufacturers (Perodua and Proton) are persevering with their rise after dropping to beneath 50% market share from 2014 to 2018. That hunch was principally attributable to Proton low contribution, however with Geely on the wheel, the tide has turned. We’ve carried out a deep dive on this altering pattern, so strap in your 200m watch and click on right here.

Final yr, Perodua and Proton bought a mixed 481,300 items, which interprets to 66.9% share of the passenger car market. That is up from 65.1% in 2022. Conversely, the non-national market share is now at 33.1%; that’s some 20% decrease than the N-N peak in 2014-2015. Nonetheless, there was progress of 6% for the non-national makes, from 224,112 items in 2022 to 237,860 items.

Exponential progress for EVs

Malaysia auto sales hit all-time record in 2023 with 799,731 units, 11% up – 740k TIV forecasted for 2024

Essentially the most eye-popping set of figures got here from electrified automobiles, which MAA manufacturers as ‘xEV’. This contains hybrids and full EVs, or BEVs (B for battery).

Final yr, xEV gross sales jumped 69% from 22,619 items in 2022 to 38,055 items, making up round 5% of the 2023 TIV. Of this whole, 28,055 items have been hybrids (BSG-type delicate hybrids are included) whereas 10,159 items have been battery electrical automobiles. Which means the year-on-year progress for hybrids is 40%, whereas EV progress is a large 286% from 2022’s 2,631 items.

MAA says that its gross sales information are solely from the affiliation’s members. New entrant Tesla isn’t an MAA member, so the precise progress for EVs would have been barely increased as Mannequin 3 deliveries began in late November.

For 2024, MAA believes that the xEV demand and curiosity will proceed to develop because of authorities help to advertise using these ‘greener’ automobiles, as effectively the introduction of extra new xEV fashions. Mohd Shamsor mentioned that this yr, the forecast is for xEVs to contribute 9-10% of TIV, and a couple of% for full EVs. Based mostly on MAA’s 2024 TIV forecast of 740,000 items, that might be as much as 74,000 xEVs and 14,800 EVs.

A comedown anticipated in 2024

Malaysia auto sales hit all-time record in 2023 with 799,731 units, 11% up – 740k TIV forecasted for 2024

MAA is anticipating TIV to reasonable by 7.5% to 740,000 items this yr. Elements cited embody macro ones such because the unsure outlook for the worldwide economic system attributable to ongoing wars and geo-political tensions. Whereas the Worldwide Financial Fund (IMF) had forecasted that international financial progress would gradual from 3% in 2023 to 2.9% this yr, the Malaysian economic system is predicted to increase at 4-5% this yr, pushed by the home demand.

After all, a slew of great new fashions are on observe to be launched in 2024, and Financial institution Negara Malaysia’s resolution to preserve the benchmark in a single day coverage fee (OPR) at 3% at the latest financial coverage committee assembly in November, are optimistic factors.

Whereas borrowing prices should not anticipated to go up, shopper spending could decelerate attributable to considerations over the approaching focused subsidy rationalisation, excessive price of dwelling, implementation of the excessive worth items tax, and a increased service tax fee for some companies together with car after gross sales. Click on on the hyperlinks to learn extra in regards to the cited components.

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