Malaysian Car Sales Anticipated To Surge This Year

Despite beginning at a slower pace, BIMB Research predicts that new car sales will pick up steam in the upcoming months due to income and salary rises. It keeps the TIV prediction for this year at 810,000 units, which is only 1% less than the record 816,747 units set the previous year.

The research firm noted that the total industry volume (TIV) dropped 40.2% month-on-month (m-o-m) to 48,875 units in January from 81,735 units in December of last year. This decrease was attributed to strong year-end promotions in December and fewer working days in January due to several public holidays.

The recent announcement by Prime Minister Datuk Seri Anwar Ibrahim regarding a phased pay increase of up to 15% for civil servants has sparked optimism in the automotive industry. BIMB research predicts that this salary adjustment, coupled with the increase in the national minimum wage, will significantly boost demand for new cars.

“Historical trends indicate that salary hikes have boosted TIV growth by enhancing disposable income and vehicle affordability. Examples of this are the 7% year-on-year increase in 2008 and 5% in 2012

“While the initial weakness in January is not unusual due to the end of year-end promotions, we anticipate a rebound in subsequent months, particularly from the B40 and M40 segments, sustaining demand through this year and extending growth into next year,”  the research house said.

BIMB Research has expressed a positive outlook on the automotive industry, maintaining an "overweight" rating. This optimistic stance is primarily attributed to the sustained and robust demand within the domestic market.

We foresee potential upside risk to TIV if the open market value (OMV) duty is implemented on Jan 1, 2026, as pre-emptive buying ahead of the new tax structure could bring forward demand into the fourth quarter of this year, temporarily boosting sales before the implementation,” it added.




In January, national car sales dropped 23.4% y-o-y to 32,512 units, and 28.8% m-o-m. Perodua sales were down 27.8% m-o-m, while Proton sales fell 31.3%, despite the e.MAS7 becoming the best-selling EV. National brands held 67% market share. Non-national car sales plunged 54.6% m-o-m, mainly due to weaker commercial vehicle sales.