Malaysia's automotive market hit record sales in 2024, driven by local giants like Perodua and Proton, and rising EV demand. Foreign brands like BYD, Tesla, and Toyota expand as the nation pushes to become a regional hub for electric and hybrid vehicles.
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Malaysia has established itself as a key player in the Southeast Asian automotive industry. While many global automakers have manufacturing plants in the country, Malaysia takes pride in having homegrown car brands that have shaped its automotive landscape. The most notable Malaysian car manufacturers are Proton and Perodua, which have played a significant role in the country’s industrial development.
Total Industry Volume (TIV):
816,747 units sold in 2024 — an all-time high.
Q1 2025 continues strong, indicating sustained consumer demand.
Key Drivers: Economic growth (~5.2% in 2024). Government incentives for EVs. Improved vehicle supply chains post-pandemic. Competitive financing options
In 2024, Malaysia's automotive industry achieved a historic milestone with a Total Industry Volume (TIV) of 816,747 units, surpassing the previous record of 799,821 units in 2023. December 2024 alone saw the highest monthly TIV ever recorded, with 81,735 units sold. The robust performance of the automotive sector is closely linked to Malaysia's economic growth, which stood at 5.2% in the first three quarters of 2024, up from 3.8% during the same period in 2023. This economic resilience bolstered consumer confidence and spending power, contributing to increased vehicle sales.
Perodua. Market share: ~43% of national car sales. 2024 Sales: 358,102 units — highest ever. Popular Models: Myvi, Bezza, Axia. Strengths: Affordable pricing, local servicing network, high reliability. Perodua maintained its position as Malaysia's top-selling car brand in 2024, with record-breaking sales of 358,102 units. The company's success underscores the strong demand for affordable and reliable vehicles in the Malaysian market.
Proton. 2024 Sales: ~154,000 units. Popular Models: X70, X50, Persona. EV Launch: e.MAS 7 in Dec 2024 — Proton’s first electric vehicle. Strategy: Move toward EV, regional expansion, tie-up with Geely. In December 2024, national automaker Proton launched its first electric vehicle, the e.MAS 7, available in both basic and premium models. This move signifies Proton's commitment to the EV segment and aligns with Malaysia's broader goals of becoming a regional hub for EV production.
Japanese Brands. Top Players: Toyota, Honda, Nissan. Consumer Appeal: Resale value, reliability, hybrid offerings. Toyota Vios and Honda City remain top performers
Korean Brands. Key Players: Hyundai, Kia. Focus: Design-forward models, expanding EV lineups
Chinese Brands. Global automotive players are increasingly investing in Malaysia. Stellantis, in partnership with China's Leapmotor, introduced an electric SUV to the Malaysian market in October 2024, marking their entry into Southeast Asia and highlighting Malaysia's strategic importance in the region's automotive landscape. Notable Entrants: BYD, Chery, Leapmotor (via Stellantis). Rapid growth: EV-focused, tech-driven features at competitive prices. Sales of Chinese EVs more than doubled in 2024
European Brands. Luxury segment: BMW, Mercedes-Benz, Volvo. Volvo Malaysia: Assembles EVs locally — XC40 Recharge. Focus: Premium market + sustainable/green offerings
Malaysia is making significant strides in EV adoption, with battery-electric vehicle sales experiencing a 112% increase in the first half of 2024. The government aims for EVs and hybrids to constitute 20% of new car sales by 2030, supported by incentives such as tax exemptions and infrastructure development.
EV Sales Growth: +112% YoY in H1 2024. Government Goal: 20% of new car sales to be EVs or hybrids by 2030. Top EV Brands: Tesla (new entrant), BYD, Hyundai, Volvo
Proton: Malaysia’s First National Car
Founded in 1983, Perusahaan Otomobil Nasional (Proton) was established as Malaysia’s first national car company under the vision of then-Prime Minister Tun Dr. Mahathir Mohamad. Proton launched its first model, the Proton Saga, in 1985, which quickly became a symbol of national pride. With technology partnerships from Mitsubishi in its early years, Proton steadily grew its presence in the domestic and international markets.
Proton later acquired British automaker Lotus, leveraging its engineering expertise to enhance the performance and quality of its vehicles. In 2017, Chinese automotive giant Geely acquired a significant stake in Proton, revitalizing the brand with new models such as the Proton X70 and X50, which were well-received for their advanced technology and affordability.
Perodua: The People’s Car
Established in 1993, Perusahaan Otomobil Kedua (Perodua) emerged as Proton’s competitor, focusing on producing compact and fuel-efficient cars. Unlike Proton, which initially aimed to build a full-fledged Malaysian automotive industry, Perodua partnered with Japanese automaker Daihatsu to develop its vehicles. This collaboration enabled Perodua to introduce highly reliable and cost-effective models like the Perodua Kancil, Myvi, and Axia, which remain popular among Malaysian consumers.
Perodua has consistently held the top spot in Malaysia’s automotive market in terms of sales, thanks to its affordability, low maintenance costs, and practical designs. The Perodua Myvi, in particular, is regarded as one of the best-selling cars in Malaysia and has even gained recognition overseas.
Challenges and Future Prospects
While Proton and Perodua have contributed significantly to Malaysia’s automotive industry, they face challenges such as increased competition from foreign brands, the shift towards electric vehicles (EVs), and evolving consumer preferences. The Malaysian government has been actively promoting the development of the EV sector, offering incentives to encourage local automakers to transition towards sustainable mobility.
Proton and Perodua have both signaled their interest in electric and hybrid vehicles, with future plans aligning with the government’s National Automotive Policy (NAP) 2020, which focuses on Next-Generation Vehicles (NxGVs) and green technology.
