Merdeka sales set to drive automotive total industry volume growth
Published on: Thu, Aug 21, 2025
By: Bernama Text Size: It expects Perodua to benefit the most, with a 44 per cent TIV market share, supported by the highest localisation rate, attractive new launches, rising household income, higher minimum wages from February 2025, and a stable labour market. - Pic for illustration only. Kuala Lumpur: Malaysia's automotive sector total industry volume (TIV) for August 2025 is expected to be stronger than July 2025, driven by aggressive Merdeka celebration sales. MBSB Investment Bank Bhd said sales momentum is also likely to remain strong this month, underpinned by improved stock availability.
Advertisement 'Passenger vehicle TIV should see some support from new model launches in second half of 2025, while the recent overnight policy rate (OPR) reduction may help improve buying sentiment,' it said in a research note. Meanwhile, Kenanga Investment Bank Bhd said national marques stood their ground, reaping market share from the non-national marques, especially Perodua – backed by sustained demand in the affordable segment, attractive new launches and a downtrading trend among mid-market buyers. Within the non-national marques, Mazda was the most affected, due to slower new launches and intense competition from Chinese marques. 'For July 2025, Chery secured third place while BYD slipped to fourth, which we believe was due to the dilution of the electric vehicle (EV) market share as more EV brands entered the market,' it said. The bank projects Malaysia's TIV of 805,000 units for 2025, driven by the forward-buying interest following the deferment of new excise duty regulations to end-2025. It expects Perodua to benefit the most, with a 44 per cent TIV market share, supported by the highest localisation rate, attractive new launches, rising household income, higher minimum wages from February 2025, and a stable labour market. However, the bank noted that the premium segment may face headwinds, as target customers could delay new purchases, downtrade to smaller models, or switch to hybrids and EVs to reduce fuel cost after the introduction of fuel subsidy rationalisation. Concurrently, it said household budgets are set to come under pressure from higher fuel costs and an expected 14 per cent increase in base tariffs for the higher-end usage, which could prompt consumers who have installed solar panels to switch to EVs. The bank added that EV routine maintenance costs remain considerably lower than those of internal combustion engine vehicles, given the reduced number of moving parts and less wear and tear.
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