Malaysia is now the 2nd largest auto market in Southeast Asia after overtaking Thailand for 3 consecutive quarters through Q1 2024.
This is a major shift in the region as Malaysia has been ranked 3rd for a long time, though Indonesia still tops the list due to the sheer size of its population and market.
Malaysia overtakes Thailand as the 2nd largest auto market in Southeast Asia
According to sales data compiled by Nikkei Asia, Indonesia recorded the most auto sales in Q1 2024 followed by Malaysia in 2nd place. Thailand, Philippines and Vietnam make up the top 5.
Out of the top 5 countries though, only Malaysia (5% increase) and the Philippines (13% increase) recorded an increase in auto in Q1 2024 compared to the same period in 2023.
In contrast, Indonesia’s auto sales fell by 24%, Thailand’s by 25% and Vietnam’s by 16%.
Total vehicle sales in Malaysia are expected to decline this year
For Malaysia, Nikkei Asia sourced the auto sales figure published by the Malaysian Automotive Association (MAA) which revealed that 202,245 vehicles were sold in our country in Q1 2024. This followed an 11% in 2023 to a record 799,731 vehicles.
Despite this trend, MAA expects a 7.5% decline in total vehicle sales in 2024 in Malaysia due to concerns over targeted subsidy rationalisation, high cost of living and higher tax rates.
However, the association expects sales of hybrid and electric vehicles (EVs) to grow this year.
So, what do you guys think of Malaysia overtaking Thailand as the 2nd largest auto market in Southeast Asia? Share your thoughts with us in the comments!
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