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In a spectacular rebound from the challenges posed by the COVID-19 pandemic, the Malaysian automotive sector has achieved an unprecedented milestone. The Malaysian Automotive Association (MAA) proudly announced the 2023 auto sales results, revealing an all-time record of nearly 800,000 units sold. The total industry volume (TIV) of 799,731 units marks an impressive 11% increase from the previous record set in 2022.
This achievement signifies a resilient recovery from the pandemic-induced downturn and reflects the industry's robust performance, securing a second consecutive year of surpassing the 700,000 units mark. The total production also soared to a historic high of 774,600 units, demonstrating a remarkable 10% increase and maintaining the momentum above the 700,000 mark for the second year running.
The driving force behind this automotive surge was primarily attributed to the passenger car sub-segment. A stable socio-political environment and a resilient domestic economy played pivotal roles in fostering record-breaking sales. The fulfilment of SST-exempt bookings, especially those registered before March 31, emerged as a significant contributing factor.
Commending the government for steering the country into a stable socio-political environment, MAA President Mohd Shamsor Mohd Zain expressed gratitude for the support rendered to the automotive industry. The success was a testament to favourable conditions that enabled businesses to thrive.
Delving into the specifics, passenger vehicles, particularly the passenger car segment, witnessed a remarkable 12% growth, contributing nearly 90% to the overall success with 719,160 units sold. Among passenger body styles, the MPV category experienced the most significant growth at 27.6%, attributed to the second-generation Perodua Alza's impactful full-year sales in 2023.
Highlighting the dominance of national brands, Perodua and Proton maintained their upward trajectory, capturing 66.9% of the passenger vehicle market. This represents an increase from 65.1% in 2022, showcasing the continued ascendancy of the national brands.
A striking revelation came from the electrified vehicle (xEV) category, encompassing hybrids and battery electric vehicles (BEVs). xEV sales witnessed a phenomenal 69% surge, accounting for around 5% of the 2023 TIV. Notably, BEVs exhibited an extraordinary 286% growth from 2022.
Looking ahead, MAA anticipates a moderation in TIV by 7.5% in 2024, projecting a figure of 740,000 units. While macroeconomic uncertainties, geopolitical tensions, and global economic outlook concerns are cited as factors, the sector remains optimistic. Significant new model launches and government support for 'greener' cars are expected to sustain interest and demand, with xEVs contributing 9-10% to TIV, including 2% for full EVs.