Passenger cars are the most popular vehicles in Malaysia. They held the largest market share, and sales of passenger cars reached nearly 400 thousand units. SUVs were the second most popular car segment, with more than 190 thousand units sold in the same year.
Malaysia's local automotive manufacturersMalaysia is the only country in Southeast Asia that has two of its own well-known car brands. While other Asian markets are dominated by Japanese car manufacturers, the dominance of the Malaysian market is shared by the two national manufacturers, Proton and Perodua. For many decades, Malaysia's automobile policy was characterized by protectionist measures aimed at promoting the two manufacturers until they were internationally competitive.
Perodua and Proton ranked first and second among the bestselling car brands in the country. The national brands’ success is also due to their flagship models. For example, the Proton Saga was responsible for almost half of the company’s sales volume.
EVs, the future of Malaysia’s automotive industryAlthough 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 2022, there was an increase of more than 800 percent in the EV sales volume in Malaysia. EVs are also exempted from import and excise duties until 2024.
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 can overtake conventional passenger cars in the Malaysian market.