Remember the open market value (OMV) debacle? Yes, the one that was said to potentially make locally-assembled (CKD) cars cost 10-30% more and that the government has deferred to January 2026, after having deferred it at least three times. BIMB Securities expects this to spur forward buying, especially in the fourth quarter this year, reports The Edge.
“Expectations of new OMV duties, potentially effective by 2026, may spur early purchases and boost 4Q 2025 sales. We maintain our neutral view on the automotive sector, supported by resilient underlying demand and favourable income policies,” BIMB Securities said in a research note. Kenanga Investment Bank has also previously supported the forward buying theory.
However, global supply chain disruptions, softer consumer sentiment amidst rising living costs and strong Chinese competition – including the EV price war – remain key downside risks, BIMB Securities added.
How many new cars will Malaysia buy this year, after an insane 816,747-unit record last year? RHB Investment Bank predicts 730,000, Hong Leong Investment Bank 750,000, CIMB Research 760,000, Maybank Investment Bank Research 790,000 and Kenanga Investment Bank 805,000.
If we take the Malaysian Automotive Association’s 780,000 units as the official 2025 total industry volume (TIV) forecast, we’re now 41% of the way there (316,737 units year-to-date May 2025, down 5% versus 333,309 units year-to-date May 2024).
May 2025 saw 68,007 new cars sold in Malaysia (+12.4% from April’s 60,527 units), driven by stronger passenger vehicle sales, which rose 12.1% month-on-month (MoM) to 55,971 units. Commercial vehicle sales also grew 15.2% MoM to 5,250 units.
Clockwise from left: Proton eMas 7, BYD Sealion 7, BYD Atto 3
“While we think the impending expiry of the tax exemption on CBU (fully-imported) EVs post-2025 could result in a surge of EV sales volumes this year, the local EV market remains modest, accounting for circa 2% of total car sales. Hence, it is unlikely that a surge in EV demand would materially move the TIV needle in 2025,” RHB Research said in a note, adding that the 2026-expected OMV implementation contributes to the sector’s policy overhang.
Although the road transport department’s (JPJ) data says that 44% more EVs were sold in May (4,152 units) than April, the EV rise in Malaysia is generally gradual – analysts say cars that are either partially (hybrids and plug-in hybrids) or fully powered by electricity (EVs) still face affordability constraints, with many of them still priced outside the mass market.
The RON 95 petrol subsidy rationalisation (which will happen, we just don’t know exactly when) may help public transport gain traction as an alternative, but it largely depends on how the policy is carried out, said RHB Research, with analysts predicting that the move could drive middle-income consumers to EVs or more fuel-efficient ICE cars.
Looking to sell your car? Sell it with Carro.
Waiting for 2026 to see EV sales drop to near zero.
Dont say that, Sabri the BYD lang will cry to eternity.
Congrats maybe u can earn commission from ur lapsap bmw
“Saya Ulammmmm……”
This will continue to haunt and petrify those who believed and genuinely thought by electing the same person who caused 1998 will do a better job 20 years later. For the first time, we go free fall without any safety net.
What free fall?
Anwar menang rakyat senang
Refer my name
Once “happen”, they will be out. Mark our words!!!
car price going to go up, petrol and electricity subsidy going to be removed, egg subsidies also going to remove, diesel subsidy has already been removed and SST will be expanded to cover more goods.
now, what has MADANI government contributed for the good of the people? instead they are interested to only add more money into the national coffers by taxing more from Malaysians. Meanwhile they are protecting the politicians’ interest like dropping corruption charges, discount on fines after sentencing and MPs are enjoying big allowances and stacking of pensions. Whatever the government do, it doesn’t benefit Malaysians but themselves.