H1 2024 TIV Up 6.6%, MAA To Revise Forecast - 6,617 BEV Sold

The first six months of 2024 have seen a continued upward momentum in the sales of new motor vehicles by members of the Malaysian Automotive Association (MAA). The Total Industry Volume (TIV) registered an impressive 390,296 units, a significant increase from the 366,176 units recorded in the same period of 2023. This marks an increase of 24,120 units or 6.6%.

The robust growth in TIV is primarily driven by the strong performance of the passenger car sub-segment, which contributed the largest volume increase. Year-On-Year (Y-O-Y), monthly total vehicle sales were consistently higher in the first half of 2024, except for March and June, compared to the same months in 2023.

Several factors contributed to the higher TIV in 1H 2024:

1. Resilient Domestic Economy: The country’s GDP grew at a higher rate of 4.2% in the first quarter of 2024, up from 2.9% in the fourth quarter of 2023.
2. Stable Overnight Policy Rate (OPR): The OPR has remained stable at 3% since May 2023, creating a favorable economic environment.
3. Stable Socio-Political Environment: A stable socio-political climate bolstered consumer confidence.
4. Stable Employment Market: Steady employment rates contributed to consumer spending power.
5. Backlog Orders: There were many backlog orders, particularly in the A segment.
6. Successful New Model Launches: Many new models with exciting features and affordability were launched and well received by the market.
7. Increased BEV Sales: Battery Electric Vehicle (BEV) sales surged due to the introduction of many new models in the first half of 2024.

The combined market share of the two national makes, driven by the strong performance of Perodua, rose to 62% (241,937 units) in 1H 2024 compared to 60.3% (220,702 units) in the same period of 2023. Meanwhile, non-national makes also registered higher sales volumes, with 148,360 units, marking a 2% growth compared to 145,474 units in 1H 2023.

Total production volume in the first half of 2024 increased by 8.1%, reaching 392,052 units compared to 362,535 units in the same period last year. This rise in production volume is in line with the surge in demand for new vehicles.

Looking ahead, MAA has revised its forecast for the Total Industry Volume for 2024, considering several key factors:

• Resilient Domestic Economy: The Government is optimistic that Malaysia’s GDP will expand within the official forecast range of 4% to 5%.
• Stable OPR: Bank Negara’s decision to maintain the OPR at 3% at its recent Monetary Policy Committee meeting may help stimulate domestic spending, including for big-ticket items like new cars.
• Healthy Backlog Orders: Especially in the A segment passenger cars market.
• New Model Launches: The introduction of exciting and affordable new models with newer features, including both internal combustion engine (ICE) vehicles and electrified vehicles (xEV).
• Aggressive Promotional Strategies: MAA members’ continuation of aggressive promotional strategies and value-added services are expected to improve demand.

To sum up, the first half of 2024 has shown a strong performance in the automotive industry, driven by economic resilience, consumer confidence, and strategic initiatives by MAA members. The outlook for the remainder of the year remains optimistic, with expectations of continued growth in the market.