Auto Sales To Cool In 2025 After Record High In 2024, Says HLIB

KUALA LUMPUR, May 21 (Bernama) -- Hong Leong Investment Bank (HLIB) expects the automotive sector’s total industry volume (TIV) for 2025 to normalise down to the 750,000-unit level, after achieving a record high of 816,700 units in 2024.

The investment bank made the projection primarily due to declining order backlogs and easing new order intakes over the coming months.

“Nevertheless, there is still upside potential from exciting new model launches in 2025, along with more aggressive marketing activities to sustain sales by the various original equipment manufacturers, but at the expense of margins,” it said in a note today.

The Malaysian Automotive Association (MAA) projected the 2025 TIV to be at 780,000 units.

On Monday, the association reported an expected weak April 2025 sales of 60,527 units, a drop of 16.8 per cent month-on-month (m-o-m), mainly due to fewer active working days during the month of Raya holidays.

This brings the year-to-date tally to 248,730 units, down 5.4 per cent year-on-year.

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Meanwhile, MIDF Amanah Investment Bank Bhd has maintained its 2025 TIV forecast of 792,000, which is broadly in line with MAA’s projection of 780,000 units, as high base effects begin to set in.

“With the revised excise duty for completely knocked down vehicles now scheduled to take effect in January 2026, potentially raising car prices by 10 per cent to 30 per cent if the ruling is upheld, there may be some degree of frontloading in demand this year,” it said.

It expects TIV in May 2025 to improve m-o-m, supported by stronger demand from East Malaysia ahead of the Kaamatan and Gawai celebrations, as well as a greater number of working days.

This would be further supported by sustained interest in new models introduced earlier this year, it added.

-- BERNAMA