Latest news with #MalaysianAutomotiveAssociation
New Straits Times
3 days ago
- Automotive
- New Straits Times
Car sales set to skid further as headwinds mount
KUALA LUMPUR: After a sluggish first half of 2025, Malaysia's auto market appears to be hitting the brakes hard, with analysts signalling a further slowdown in sales momentum for the rest of the year. Following three consecutive years of record-breaking sales, the market now appears to be settling into a more subdued phase, marked by shrinking order backlogs, tighter loan approvals and intensifying price competition. "The market is showing signs of normalisation amid weakening order backlogs, tighter loan approvals and intensifying price competition, particularly in the non-national segment," said RHB Research analyst Iftaar Hakim Rusli. Total industry volume (TIV) for the first half fell 4.6 per cent year-on-year to 373,636 units, according to the Malaysian Automotive Association (MAA). Despite the softer start, MAA raised its full-year sales forecast to 800,000 units, up from an earlier projection of 765,000. RHB Research is holding a more cautious view, maintaining its 2025 TIV forecast at 730,000 units, which represents an 11 per cent decline from last year. Iftaar said the biggest drag is expected to come from non-national marques, many of which are now feeling the heat from an influx of aggressively priced models, especially from Chinese entrants. These new players have forced incumbents into deep discounting, a move that, while good for consumers, is destabilising the market. "Some buyers may delay their purchases in anticipation of further price cuts from both existing and new non-national marques, thereby destabilising the non-national segment," he said in a research note. Loan approval rates have also taken a hit, dropping to 55 per cent year-to-date from 58 to 63 per cent in the 2022 to 2024 period. Order backlogs, once a sign of healthy demand, are thinning too, with Perodua's backlog falling from 100,000 units to 90,000 and Toyota's from 20,000 to 15,000, said Iftaar. He added inflationary pressures are compounding the problem, squeezing household budgets just as competition heats up. In the electric vehicle (EV) segment, Iftaar expects growth to continue but remain modest due to high prices and limited charging infrastructure. The current tax exemptions for completely built-up (CBU) EVs, which have supported early adoption, are unlikely to be extended beyond end-2025, as the government shifts its focus to incentivising locally assembled EVs. "An extension of the tax holiday for CBU EVs would be counterproductive for incentivising original equipment manufacturers to establish local production facilities. "While we expect EV numbers to continue picking up in the coming months, growth in market share is likely to remain moderate due to structural headwinds, such as high pricing and limited availability of charging infrastructure. "As such, EVs are unlikely to influence overall TIV in the near term," he said. Another overhang is the impending implementation of the revised open market value (OMV) excise duty in January 2026. Iftaar said that although the measure was recently deferred again, it could lead to a 10 to 30 per cent price hike for completely knocked down vehicles unless mitigated by the authorities. He noted that the Finance Ministry has signalled that such a steep hike is unlikely but has yet to finalise the new pricing methodology. "The new OMV takes into account the engineering work, royalty payments and license fees, amongst others. "For CBU vehicles, prices are based on the cost, insurance and freight, on which import and excise duties are imposed," he said. Meanwhile, HLIB Research revised its 2025 TIV forecast slightly higher to 770,000 units to reflect stronger-than-expected demand, supported by aggressive sales and promotional campaigns as well as the launch of new, attractive models. HLIB analyst Daniel Wong said order backlogs have eased to between 120,000 and 130,000 units, with Perodua accounting for the bulk at about 100,000 units. He said Perodua is on track to sustain its sales momentum through year-end, aiming for 345,000 units in 2025, backed by steady order intake and production levels. "While the TIV outlook remains robust, we expect margins to come under pressure due to intensifying competition across the market. "We expect continued stiff competition for the RM100,000 to RM200,000-priced segment due to normalising of consumer demand and aggressive new launches and sales campaigns," he said. Wong added that companies with significant exposure to the US dollar, such as Toyota and Nissan, stand to benefit from the stronger ringgit. Meanwhile, Honda and Mazda, with heavier Japanese yen exposure, may continue to benefit from the relatively weak yen.
The Star
17-07-2025
- Automotive
- The Star
MAA keeps sales forecast despite decline in first half
The forecast comprises 724,000 units for passenger vehicles and 56,000 units for commercial vehicles. KUALA LUMPUR: The Malaysian Automotive Association (MAA) is maintaining its full-year total industry volume (TIV) forecast of 780,000 units for this year despite a 4.6% year-on-year decline in vehicle sales during the first half (1H25). The forecast comprises 724,000 units for passenger vehicles and 56,000 units for commercial vehicles. MAA chief operating officer, Muhammad Fateh Teh Abdullah, said a total of 373,636 vehicles were registered in 1H25, compared to 391,451 units in the corresponding period last year. 'MAA is maintaining the forecast announced in January. The factors we considered include the outlook for the domestic economy. 'Yes, there are many challenges currently affecting the economy. However, when we look at the latest forecasts issued by several research houses, particularly following the imposition of a 25% tariff by the United States, we remain cautiously optimistic,' he said. He was speaking at the Review of Motor Traders and Manufacturers' Performance for 1H25 event yesterday. Muhammad Fateh pointed out that research houses have indicated a general TIV decline of about 0.5%. He attributed the first-half slowdown to several key factors, including the high-base effect from the record TIV of 816,747 units last year, as well as advance purchases made last December. 'Last December, MAA recorded the highest-ever monthly TIV of 81,735 units. This was followed by a drop in sales in January this year, with only 50,397 units sold compared with 66,919 in January 2024. 'The removal of the diesel subsidy last June also negatively impacted the commercial-vehicle segment, with demand falling 21% in 1H25,' he said. In terms of production, total industry output declined by 10% to 352,626 units in 1H25, with passenger vehicle production down 10% and commercial-vehicle production dropping by 12%. He also noted that demand for electric vehicles is expected to increase this year, spurred by new model launches, particularly in the fourth quarter, and aggressive promotional campaigns by MAA members. The recent 25 basis point but to the overnight policy rate by Bank Negara is also expected to support consumer spending and vehicle purchases. MAA further highlighted that the outlook for the domestic economy remains resilient, with gross domestic product growth projected between 3.5% and 4.5%, despite external pressures. — Bernama
The Star
16-07-2025
- Automotive
- The Star
MAA maintains 2025 sales forecast despite 1H vehicle sales decline
KUALA LUMPUR: The Malaysian Automotive Association (MAA) is maintaining its full-year total industry volume (TIV) forecast of 780,000 units for 2025, despite a 4.6 per cent year-on-year decline in vehicle sales during the first half of 2025 (1H 2025). The forecast comprises 724,000 units for passenger vehicles and 56,000 units for commercial vehicles. Its chief operating officer, Muhammad Fateh Teh Abdullah, said a total of 373,636 vehicles were registered in 1H 2025, compared to 391,451 units in the corresponding period last year. "MAA is maintaining the forecast announced in January. The factors we considered include the outlook for the domestic economy. "Yes, there are many challenges currently affecting the economy. However, when we look at the latest forecasts issued by several research houses, particularly following the United States' imposition of a 25 per cent tariff, we remain cautiously optimistic,' he said. He was speaking at the Review of Motor Traders and Manufacturers' Performance for 1H 2025 held here today. Muhammad Fateh pointed out that research houses have indicated a general TIV decline of about 0.5 per cent. He attributed the first-half slowdown to several key factors, including the high base effect from the record TIV of 816,747 units in 2024, as well as advance purchases made in December last year. "In December 2024, MAA recorded the highest-ever monthly TIV of 81,735 units. This was followed by a drop in sales in January this year, with only 50,397 units sold compared to 66,919 in January 2024. "The removal of the diesel subsidy in June 2024 also negatively impacted the commercial vehicle segment, with demand falling 21 per cent in 1H 2025,' he shared. In terms of production, total industry output declined by 10 per cent to 352,626 units in 1H 2025, with passenger vehicle production down 10 per cent and commercial vehicle production dropping by 12 per cent. He also noted that electric vehicle (EV) demand is expected to increase this year, spurred by new model launches, particularly in the fourth quarter, and aggressive promotional campaigns by MAA members. "The sport utility vehicle (SUV) segment contributed the most to volume growth in 1H 2025, with nearly 100,000 units registered compared to 95,000 units in the same period last year,' he said. He added that when combining hybrid and EV sales within the SUV segment, total sales were approximately 36 per cent higher than in 1H 2024, with 30,573 units sold in the same period this year. The recent 25 basis point overnight policy rate cut by Bank Negara Malaysia is also expected to support consumer spending and vehicle purchases. MAA further highlighted that the outlook for the domestic economy remains resilient, with gross domestic product growth projected between 3.5 per cent and 4.5 per cent, despite external pressures such as higher global tariffs. - Bernama
The Sun
16-07-2025
- Automotive
- The Sun
MAA: Impact of US tariffs on local auto parts industry yet to be felt
KUALA LUMPUR: The domestic automotive industry has yet to feel the impact of US tariffs on vehicle parts, according to Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain. He said any potential cost increases or supply disruptions would likely only begin to materialise in about six months. 'We haven't seen any impact so far. If anything, it may not be felt for six months. At this point, we don't have any clear indication yet,' he told a press conference today. Mohd Shamsor noted that the primary concern centres around motor vehicle parts and accessories, which account for nearly US$100 million (RM424 million) in trade. 'This segment makes up about 80% of Malaysia's total vehicle-related exports to the US, excluding those related to railway and tramway systems,' he added. Mohd Shamsor said the main concerns are centred around imported completely knocked down (CKD) vehicle parts, which could be subject to US tariffs when sourced from multiple countries. 'This impact may eventually filter down and affect us, potentially leading to slightly higher costs for parts,' he said. As for direct vehicle exports, Mohd Shamsor noted that volumes remain minimal, amounting to only about US$142,000 in 2024. 'It's minimal, mainly due to the differences between left-hand and right-hand drive vehicle specifications.' According to MAA, new vehicle sales in Malaysia fell 4.6% in the first half of 2025 compared to the same period last year. A total of 373,636 units were sold between January and June, down from 391,451 units in the corresponding period of 2024. MAA attributed the decline to a high base effect following last year's record-breaking total industry volume (TIV) of 816,747 units, alongside a sharp drop in January 2025 sales, which followed a surge in advance purchases in December 2024. 'Advance purchases in December 2024 affected sales in January 2025,' MAA said, highlighting that the highest monthly TIV was recorded in December 2024 with 81,735 units sold, compared to just 50,397 units in January 2025. Commercial vehicle demand also weakened, partly due to the termination of diesel subsidies in June 2024. Sales in this segment fell 21% to 26,552 units. Meanwhile, passenger vehicle sales dipped 3% to 347,084 units.
The Sun
16-07-2025
- Automotive
- The Sun
MAA: xEV penetration in Malaysia set to reach 9.6% by end of this year
KUALA LUMPUR: The penetration of xEVs in Malaysia is projected to reach 9.6% by the end of this year, driven by the launch of new models and increased consumer interest. Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain said xEVs accounted for 8.6% of total vehicle sales in the first half of 2025. 'We've already achieved around 8.6% xEV penetration in the first half of the year. We're projecting to close the year at approximately 9.6%, supported by the introduction of new models,' he said in a press conference today. xEV is a collective term for all types of electric vehicles, including hybrid electric vehicles (HEV), plug-in hybrid electric vehicles, battery electric vehicles and fuel-cell electric vehicles. However, Mohd Shamsor cautioned that if EV-related subsidies are discontinued, the industry could see a spike in last-minute purchases towards the end of the year, followed by a prolonged slowdown. 'In the long run, the outlook would be very bearish,' he warned. Mohd Shamsor drew parallels to the introduction of HEV about 15 years ago. 'They essentially disappeared from the market for a period until manufacturers developed local assembly capabilities,' he said, adding that local production requires significant planning and cannot be implemented overnight. 'This is why we're advocating for a longer-term, consistent policy direction,' he emphasised. Commenting on the potential removal of RON95 fuel subsidies, Mohd Shamsor said it could have a similar impact on the auto industry as the earlier adjustments to diesel subsidies. 'On the flip side, it could also prompt more serious consideration of hybrids and EVs.' Mohd Shamsor also addressed the current wave of heavy discounting in the domestic car market. 'Discounting may help in the short term, but it's not healthy in the long run, especially for consumers,' he said. Excessive discounts reduce vehicle resale values, affecting early adopters the most, according to him. 'It creates an unsustainable sales environment. Promotions are necessary to attract buyers, but they shouldn't be overdone,' he said. Currently, fully imported EVs enjoy import and excise duty exemptions until December this year, while locally assembled EVs benefit from additional tax incentives until 2027. EV owners are also exempt from road tax until the end of 2025, with further incentives offered for home charging infrastructure and industry investments. However, many of these incentives are approaching their expiry, and the MAA is urging the government to extend them to maintain industry momentum. 'We're hopeful that the current subsidies and incentives will be continued. This would allow the industry to plan and support the government's goal of achieving 15% EV penetration by 2030,' Mohd Shamsor said.
