Malaysia now second-largest auto market in SE Asia
Malaysia now ranks as the second-largest auto market in Southeast Asia, with record-breaking car sales reaching nearly 800,000 in 2023, surpassing Thailand and following Indonesia, according to sales data released by industry groups from the three countries.
Malaysia’s car sales record in 2023 surpasses Thailand and stands as the second-largest auto market in Southeast Asia. (Source: Malaysian Automotive Association)
Thailand Business News reported that Malaysia has surpassed Thailand’s sales figures for three consecutive quarters until March 2024, based on the sales data released by industry groups from Thailand, Malaysia, Indonesia, the Philippines and Vietnam.
Malaysia’s increased auto sales was driven by tax exemptions for domestic vehicles as well as the popularity of national car brands, including new model launches and competitive prices for electric vehicles (EVs).
In contrast, Thailand and Indonesia experienced declines in auto sales due to various economic factors, such as nonperforming auto loans and rising interest rates. This data suggests that Malaysia’s economy and industry have strong performance, leading to higher sales figures compared to Thailand, said the Thai media .
It is also worth noting that the Philippines saw a 13% increase in auto sales, which caused by easing inflation and strong consumer spending.
In general, factors such as subsidies, macroeconomic conditions and the growing middle class play crucial roles in shaping the competitive landscape for auto market in Southeast Asia, with expectations of hybrid and electric vehicle sales growth despite overall market decline.
