Malaysians bought a record amount of cars last year, pushing 2023 auto sales close to the 800,000 units mark. The all-time high figure of 799,731 units represents an 11% growth from the 721,177 units achieved in 2022, which was a record then. By the way, the original forecast for 2023 by the Malaysian Automotive Association (MAA) was 650k, before it was revised to 725k in July 2023.
While both national and non-national makes saw growth, Perodua and Proton were largely responsible for the elevated numbers. Last year, P2 and P1 sold a combined 481,300 units, which translates to 66.9% share of the passenger vehicle market. This is up from 65.1% in 2022.
Conversely, the non-national market share is now at 33.1%, which is some 20% lower than the N-N peak in 2014-2015. Still, there was growth of 6% for the foreign makes, from 224,112 units in 2022 to 237,860 units.
The strong showing by the national brands last year is a continuation of their rise after dropping to below 50% market share from 2014 to 2018. That slump was mostly due to Proton’s low contribution, but with Geely now at the wheel, the tide has turned. As for perennial market leader Perodua, 40% market share has been the norm for some time now – just imagine four out of every 10 new cars and you’ll see the scale of P2.
The current national market share of 66.9% is the highest since 2002, when it was at 78%. There was a big surge in non-national sales from 2002 to 2005, and it stayed at around 55:45 until 2012, when a Honda-led push saw non-national makes overtake P1/P2 for the first time in 2014, when they held 53% of the market. This spell where foreign makes outsold P1/P2 lasted for five years, and the switchback happened in 2019.
The gap has been widening since, and this is likely to be the status quo for the considerable future. There seems to be no stopping Perodua, which has responded to Geely-Proton’s ambition to be Malaysia’s No.1 (and No.3 in ASEAN, as declared publicly by CEO Li Chunrong) by simply finding another gear and pulling ahead. With no new PIES to sell, the chasing Proton is banking on rebadged Geelys that are direct rivals to Japanese models, further eating into the N-N pie.
Some might see hints of a ‘proxy war’, with Perodua under Toyota’s big umbrella by virtue of it having Daihatsu as technical partner and shareholder (Daihatsu is fully-owned by Toyota), and Geely controlling Proton (although its shareholding is ‘just’ 49%). The products from Rawang and Tanjong Malim reflect this – recent P2 models wear Daihatsu and Toyota badges in Indonesia, while Proton’s X SUVs and the S70 are basically right-hand drive Geelys.
We’ve dived deep into this national vs non-national trend, tracking the ups and downs of Perodua/Proton and Toyota/Honda over the years – click on the links to read more. Also, what’s in store from Perodua, Proton, Toyota and Honda in 2024? Click on the links for our new model predictions.
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Congratulations to Proton and Perodua.
Bangsa Malaysia Boleh Maju,
Let’s manufacturing more and export more and more
Highest level of confidence. 66.9% voters PH BN
*China rebadged* and *Japan rebadged*
fixed it for ya
So when will P2 apologise & make reparations to all their customers since 1994 for P2/Daihatsu safety scandal?
Strictly speaking, both are Toyota/Daihatsu and Geely.
All these cars are of foreign origin under the skin, just with local badge. Partly foreign ownership.
The real local car that come close is Bufori.. Fully design and hand made locally and only the drive train is taken from Chrysler. 100% locally owned.
Blisfully ignoring that P1 been making their own cars for the last 20 years. Bufori is prolly dead now.
P1 has been relying on rebadging Mitsubishi, Suzuki, and Honda for several years, have you forgotten that?..
Their darkest days were when they tried to design and build their own cars, and Geely came to rescue. Now Geely wants to slowly phase out P1 own built cars..
People no choice but to buy cheaper national cars thanks to the economic failure wrought by Madanomics. This will ranks as the greatest failure after Mao’s Cultural Revolution.
it’s called *monopoly*
Monopoly is by a single company. This is duopoly, two companies controlling more than 60% of the market.
Which income category do you think buy most of the cars (proton & perodua). During the pandemic who were most affected until asking for government to give aid this & that. Yet when government lift the sales tax in 2021 & 2022, suddenly these people got enough money to buy cars??
Its the time to remove the stupid tax so these national brands can compete with non national brands
both of these brand pretty much rebadge cars and it just basically give a privilage to geely and daihatsu
It is because P1 X series stole some H and T segments with their offering.
Doing so well? No need protection anymore lah?
Then open up the market lah
Even with the foreign brand tax, they don’t dare to open up the market for chinese EV cars below 100k they know they going to get destroyed in that segment.
Would be good to see what is the actual national car vs. non-national. For example what was the sales percentage of actual local bottom up cars vs. badge engineering vs. non national.
It could mean that Proton and Perodua are doing well..or more and more people can only afford local cars
A wise decision by Bossku. If we follow the steps of the old man, Proton will need to be bailed out, as usual.
Time to bring him back. PMX has been a failure and billions of FDI are flowing all around us going to others.