MAA says strong economic growth…. We think it’s more choices and high REBATES from auto brands
Another record number of car sales for last year where there were 850,752 units sold in Malaysia in 2025, which was recently reported by the Malaysian Automotive Association(MAA).
The MAA says that this reflects a booming automotive market driven by strong economic growth (4.7% GDP), favorable (lower) interest rates (OPR cut to 2.75%), robust domestic demand, and a surge in electric vehicle (EV) purchases, especially before expiring CBU EV incentives, leading to record sales despite production challenges.
So what are the key factors in this growth? Well, we at www.dsf.my say this, its aggressive marketing campaigns and year-end promotional strategies by auto manufacturers which further stimulated demand in the final few months. It was the price war!
Plus, almost every new car launch (electric and also non electric) last year came with cash ‘REBATES’.
Meanwhile, Malaysia’s much talked about and commented (on social media) expiring import duty exemptions for fully built-up (CBU) EVs in late 2025 caused a significant spike in EV sales, with a massive 109% year-on-year increase.
MAA says that strong job markets and domestic demand supported resilient purchasing, leading to record monthly and quarterly sales.
National brands (Proton and Perodua) held a 62.3% market share, indicating strong local preferences or was it just best selling prices that reached the mass population.
Total Industry Volume (TIV) for 2025 was 820,752 units, a slight increase from 2024, marking a second consecutive year above 800,000 units. December 2025 saw the highest ever monthly TIV (90,716 units).
So, was 2025 a great year for car sales or will be the year of the highest car loan defaulters?
Malaysia’s automotive industry achieved a record-breaking 820,752 units sold. This milestone represents the second consecutive year total industry volume (TIV) surpassed the 800,000-unit threshold.
