Categories: NewsWheels

TIV hits 816,747 units in 2024, new vehicle sales up 2.1%

by VEISHNAWI NEHRU

THE Total Industry Volume (TIV) in 2024 was recorded at 816,747 units, surpassing the previous high of 799,821 units, as sales of new motor vehicles rose by 2.1%, driven largely by the passenger car segment.

Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain (picture) said the exceptional performance in 2024 can be attributed to several factors, including a resilient domestic economy, with gross domestic product (GDP) growing by 5.2% in the first three quarters of 2024, compared to 3.8% in 2023.

“The Overnight Policy Rate (OPR) remained at 3% since May 2023, providing a conducive environment for vehicle loans.

“A stable socio-political environment helped stabilise business and employment markets, and a positive employment outlook, with the unemployment rate hitting a decade low of 3.2%, also contributed,” he said in a statement.

He added that high backlog orders in the A-segment and an increase in National Makes’ share by 2%, reaching 62% of TIV, were key contributors.

He said successful new model launches with exciting features, the surge in Battery Electric Vehicle (BEV) sales due to tax incentives, and aggressive sales strategies by OEMs and distributors also played significant roles.

“The outstanding TIV achievement would not have been possible without the stable socio-political environment and the various measures undertaken by the government to stimulate the country’s economy, leading to higher GDP growth.

“Such favourable conditions are essential for us in the automotive industry, as they enable Malaysians to be more optimistic about the economy and more willing to spend, including on purchasing vehicles,” he said.

Moreover, Mohd Shamsor said non-national makes saw a 2.3% drop in sales to 311,058 units in 2024, while xEV vehicles increased by 19%, contributing to 5.6% of the TIV.

“Sales of commercial vehicles, however, declined by 13.8% due to the removal of the diesel subsidy in June 2024, which affected pick-up truck demand.

“The TIV for 2024 reached a record 816,747 units, a 2.1% increase from the previous year, while production also rose to an all-time high of 790,347 units,” he explained.

Looking ahead to 2025, he mentioned that the International Monetary Fund (IMF) projects global economic growth to improve slightly, while Malaysia’s GDP is expected to grow by 4.5% to 5.5%.

He noted the factors driving the forecast for TIV in 2025, which is expected to be 780,000 units, a 4.5% decrease from 2024.

“Key drivers include an increase in the minimum wage, salary revisions for government servants, the introduction of new brands and models, and continued favourable conditions such as a stable labor market and low unemployment rate.

“However, risks such as the US-China trade war, the impact of petrol subsidy rationalisation, and limited EV charging infrastructure in certain regions could impact overall TIV growth,” he added.

Meanwhile, MAA and the Malaysia Automotive Robotics and IoT Institute (MARii) have signed a Memorandum of Understanding (MoU) to collaborate on automotive exhibitions and motor shows.

From 2025 to 2028, the two organisations will alternate hosting the Malaysia Autoshow (MAS) and the Kuala Lumpur International Mobility Showcase (KLIMS) every two years. 

This strategic partnership aims to optimise resources, foster innovation, and create impactful events that showcase the latest advancements in automotive technology.

“We are thrilled to join forces with MARii to create an even more dynamic experience for all stakeholders.

“This collaboration will not only assist industry players by relieving them of the burden of participating in two auto shows a year but also increase the scope and impact of our motor shows,” Mohd Shamsor said.

Zukri

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