Malaysia’s Auto Market Slows, Buyers May Benefit from Price War
Malaysia’s Auto Market Slows, Buyers May Benefit from Price War
Malaysia’s automotive sector is expected to cool in 2025, and analysts warn this could trigger a price war among carmakers. While competition may squeeze profit margins, it could also mean better promotions and discounts for consumers. TA Securities has downgraded the sector to “Underweight”, citing softer demand and the lack of new catalysts. For the first eight months of 2025, total industry volume (TIV) slipped 3.8% year-on-year to 516,900 units. The 2025 forecast remains at 750,000 units, down 8.2% from last year, suggesting the slowdown is part of a continuing trend. August saw sales rise to 73,000 units thanks to stock availability, Merdeka promotions, and new models. Proton jumped 10.9% month-on-month to 14,625 units, driven by the X50 and Saga as well as growing EV interest. Perodua, however, dropped 4.4% to 32,026 units due to softer demand and inventory adjustments. The Malaysian Automotive Association (MAA) expects sales to moderate in September, citing fewer working days and consumer caution ahead of Budget 2026 and the government’s planned fuel subsidy rationalisation. Analysts conclude that although the outlook for automakers is challenging, buyers may be the real winners as brands compete aggressively to defend market share.
Malaysia