Vehicle Sales Up by 10.3% in First Half of 2023 – MAA

2023 has been quite a positive year for the local automotive industry so far, with total industry volume (TIV) rising by 10.3% to 366,037 units from 331,746 units in the similar corresponding period in 2022, according to Malaysian Automotive Association (MAA).

MAA New President Mohd Shamsor Mohd Zain (centre), led the special press conference held today

Announced during a special press conference held today, MAA also said that not only the new vehicle market has returned to pre-pandemic levels, but it even surpasses said levels, rebounding strongly last year and again during the first half of 2023.

Earlier this year, MAA announced that total sales had risen by 41.6% to 720,658 units in 2022 alone, making the annual TIV 2022 an all-time high achieved in the history of the local automotive industry. With this year’s first-half report showing positive growth over last year’s YTD volume, the association said the industry was able to maintain its growth trajectory for 1H2023.

This is achievable due to several factors, including the positive fulfilment of bookings received during the Penjana sales tax exemption period, robust sales figure driven mainly by national automakers, improved industry supply chain environment, new model launches with competitive pricing, and many more.

Of the total 366,037 units delivered by 1H2023, about 220,702 of them came directly from national automakers – constituting about 68% of the total passenger vehicle market share. In contrast, sales for the non-national brand passenger vehicles dropped 3% to 105,959 units.

In 2023 so far, the monthly TIV reached its peak in March 2023, with over 78,894 units sold and delivered – a new all-time high monthly TIV recorded in the history of the local automotive industry. On a year-on-year (y-o-y) basis, except for April and June, the monthly TIV was consistently higher in 1H2023 compared to similar corresponding months in 1H2022. Except for April 2023, the industry was able to sustain its monthly TIV at over the 50,000 mark for the entire period of 1H2023.

In terms of total production volume (TPV), 1H2023 also recorded a slightly higher volume compared to 1H2022, with over 362,535 units produced so far this year – a 14.0% increase compared to the same period last year (317,933).

With the TIV showing positive outputs for 1H2023, MAA has decided to revise upwards its full-year 2023 forecast. By the end of the year, the association forecasted that over 725,000 units of vehicle will be delivered – more than 100,000 units up from its initial forecast volume of 650,000. For the record, the TIV for full-year 2022 was 720,658 units, which is only 0.6% less compared to MAA’s revised forecast for 2023 TIV.

Commenting on the revision of 2023 TIV, MAA has stated several factors for this increment. This includes the stable economic outlook where the Malaysian economy is projected to grow between 4% to 5% for full year 2023, new model launches, MAA members’ continuation of aggressive promotional strategies, further improvement of industry supply chains, and more importantly, Bank Negara’s decision to main its overnight policy rate (OPR) at 3% back in May this year.

Currently, the Malaysian automotive industry has contributed to about 4% to 5% of Malaysia’s annual GDP, with over 30 brands and manufacturers from both passenger and commercial vehicles segment in operation. The industry harnesses a total production capacity of over one million units, with a workforce of over 700,000 personnels, more than 640 parts and components suppliers, and over 60,000 aftermarket establishments.