16-07-2025
MAA: Vehicle sales down 4.6pc in first half of 2025, target remains unchanged
KUALA LUMPUR, July 16 — Malaysia's new vehicle sales fell 4.6 per cent in the first half of 2025 compared to the same period last year, the Malaysian Automotive Association (MAA) said today.
A total of 373,636 units were sold from January to June, down from 391,451 units in the corresponding period in 2024.
MAA attributed the decline to several factors, including a high base effect from last year's record-breaking total industry volume (TIV) of 816,747 units, as well as a sharp drop in January sales following a surge in advance purchases the month before.
'Advance purchases in December 2024 affected sales in January 2025. Highest monthly TIV of 81,735 units recorded in December 2024 compared to January 2025 TIV of 50,397 units,' the association said in its mid-year sales and production review released today.
December 2024 saw a record 81,735 units sold, while sales in January 2025 dropped to 50,397 units.
Demand for commercial vehicles also declined, partly due to the end of diesel subsidies in June 2024. Sales in this segment fell 21 per cent to 26,552 units.
Passenger vehicle sales dropped three per cent to 347,084 units.
Despite the slower start to the year, MAA is maintaining its 2025 target of 780,000 units, citing continued economic growth and lower interest rates.
It also expects higher demand for hybrid and small, affordable cars following the reduction in fuel subsidies.
Factors supporting the projection include Malaysia's GDP growth forecast of between 3.5 and 4.5 per cent, Bank Negara Malaysia's recent OPR cut to 2.75 per cent, and sustained demand for hybrid electric vehicles (xEVs) and entry-level A-segment models, particularly after the removal of petrol subsidies in the second half of the year.
'The forecast remains in line with MAA's early projection of 780,000 units for 2025, which is 4.5 per cent lower than last year,' it said.
So far, the industry has achieved 48 per cent of the full-year target, MAA added.
Sales of xEVs rose 36 per cent year-on-year to 30,573 units, while SUVs saw the largest gain in volume, increasing to 99,891 units from 95,307 in the same period last year.
Total industry production for the first half of 2025 fell 10 per cent to 352,626 units. — AFP
