The Malaysian Automotive Association (MAA) recently revealed that 70,057 new cars found homes in the country in July (+28% over June), and MBSB Investment Bank believes August could be even better due to aggressive Merdeka promos and improved stock availability, Bernama reports.
“Passenger vehicle total industry volume (TIV) should see some support from new model launches in second half of 2025, while the recent overnight policy rate (OPR) reduction may help improve buying sentiment,” it said in a research note yesterday.
According to Kenanga Investment Bank, thanks to sustained demand in the affordable segment, attractive new launches and a down-trading trend among mid-market buyers, national carmakers (particularly Perodua) are continuing to take away market share from the non-nationals, with Mazda hurt the most due to intense Chinese competition and slower new launches.
“For July 2025, Chery secured third place while BYD slipped to fourth, which we believe was due to the dilution of the electric vehicle (EV) market share as more EV brands entered the market,” it said.
The bank added that it’s sticking to its 805,000-unit TIV forecast for 2025, driven by forward-buying interest following the deferment of new excise duty regulations to end-2025.
Kenanga Investment Bank expects Perodua to benefit the most, with a 44% market share, supported by the highest localisation rate, attractive new launches, rising household income, higher minimum wages beginning February, and a stable labour market.
However, it noted that the premium segment could face headwinds, as target customers could delay new purchases, down-trade to smaller models or switch to hybrids and EVs after targeted RON 95 petrol subsidies start.
It added that household budgets are set to come under pressure from higher fuel costs and an expected 14% increase in base tariffs for higher usages, which could encourage those who have installed solar panels to switch to EVs.
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