KUALA LUMPUR, Jan 24 (NNN-BERNAMA) – Analysts have foreseen lower new car sales in Malaysia this year, after total industry volume (TIV) hits historical high last year.
Kenanga Research said in a recent note that, following a record performance, it expects Malaysia’s TIV for the first quarter to weaken, as automakers and consumers take a breather, while preparing for the coming festive period.
“We project a TIV of 725,000 units this year, as a reflection of the trend in 2015, when TIV reached a peak, then fell 13 percent post-goods and services tax (GST) holiday,” said the research house.
Meanwhile, Hong Leong Investment Bank Research expects 2026 TIV in Malaysia to normalise to 780,000 units, down five percent from 2025.
“We expect national original equipment manufacturers (OEMs) to sustain their sales momentum into 2026, while non-national marques will likely remain under pressure, amid heightened competition from new market entrants, which offer aggressive pricing, improved designs, and enhanced product offerings,” said the research house.
After four consecutive years of growth, RHB Investment Bank also expects TIV to tone down slightly by two percent to 805,000 units, coming from a high base and softening of car replacement cycles, though macroeconomic conditions are still supportive of car purchases.
“We maintain our cautious outlook on the sector, as we think the intensifying competition in the non-national segment will continue to persist, alongside the lack of near-term re-rating catalysts, to boost TIV to record highs,” said the research house.
Key risks in the sector include softer-than-expected orders and intense price competition, it added.
Malaysia’s TIV in 2025 hit a new high of 820,752 units on the back of a strong month in Dec, driven by favourable financing, strong domestic demand and robust economic growth.
The Malaysian Automotive Association (MAA) has projected TIV to decline to 790,000 units this year, down four percent year-on-year.– NNN-BERNAMA