Non-national carmakers sold 2.3% fewer cars in 2024 (311,058 units) than they did in 2023 (318,521 units), and an analyst infers that Chinese car brands are giving established non-national makes a serious challenge in Malaysia, Berita Harian reports.
Chery, which entered Malaysia just one-and-a-half years ago, became the third-best selling non-national brand, while BYD slipped into the top 10 by selling just electric vehicles (EV), said RHB Investment Bank analyst Syahril Hanafiah.
He expects EV sales to jump significantly this year as from next year, fully-imported (CBU) EVs will no longer be tax-free. He also noted that the number of locally-assembled (CKD) EVs on sale remain limited, and that the average EV on the road is imported from China.
“Therefore, we predict demand for CBU EVs to increase sharply before the tax exemption period ends. However, the local EV market is still small and only constituted 2.5% of 2024 car sales. Therefore, the surge in EV demand is unlikely to have a significant impact on the total industry volume (TIV),” said Syahril.
He generally foresees a slower 2025 due to intense price competition among non-national vehicles and decreasing order backlogs, while uncertainties surrounding luxury goods taxes and targeted RON 95 petrol subsidies persist.
“We expect TIV to decline once the high base effect is felt, and we see no compelling factors to help automotive sales in 2025 remain at their current high levels. We believe this decline will stem from non-national carmakers continuing to face fierce competition from new entrants, particularly Chinese brands.
“The influx of new car models flooding the market with huge discounts may cause buyers to delay purchases in anticipation of further price reductions from both new and existing non-national car companies. This has put the non-national segment in a shaky state,” Syahril said.
He added that although EVs are not immune to competition from new model launches, they are still far from popular due to the price factor, with CBU EVs tied to a RM100,000 minimum.
A record 816,747 new cars were sold in Malaysia in 2024, breaking the 800k barrier for the first time. This beat 2023’s 799,821-unit record by 2.1%. The Malaysian Automotive Association (MAA) forecasts 2025 TIV to be 780,000 units; RHB Investment Bank predicts 730,000.
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