The bounce again from Covid is actual, and really robust. The Malaysian Automotive Affiliation (MAA) introduced 2023 auto gross sales outcomes right now, and it’s an all-time report with near 800,000 items offered. The 799,731 items complete trade quantity (TIV) is 11% larger than the 721,177 items achieved in 2022, which was a report then.

That is the second annual TIV achieve for the reason that downturn in 2020-2021 brought on by the Covid-19 pandemic. It’s additionally the second consecutive yr that TIV exceeded the 700,000 items mark. It’s the identical for complete manufacturing – up 10% to 774,600 items, an all-time excessive and the second consecutive yr above the 700,000 mark.

What’s behind the increase?

MAA stated that the report gross sales was propelled primarily by the passenger automobile sub-segment, amid a resilient home financial system and a really a lot secure socio-political atmosphere. One of many greatest components was the fulfilment of SST-exempt bookings, a majority of which have been registered earlier than March 31.

Different components embody the launch of recent fashions, together with EVs with engaging costs (tax-free for CBUs) and a much-improved trade provide chain atmosphere. The latter refers back to the elements provide difficulty that plagued the trade post-Covid.

“Kudos to the federal government for steering the nation into a really a lot secure socio- political atmosphere and attaining a lot progress. Such beneficial circumstances have enabled companies to thrive and succeed. On behalf of all MAA members, I wish to specific our heartfelt and honest appreciation to the federal government of Malaysia for all of the assist and help rendered to the automotive trade,” stated MAA president Mohd Shamsor Mohd Zain.

Diving deeper into the headline determine, whereas each passenger automobile and business automobile segments registered development in 2023, it’s the previous that’s answerable for the report – the 719,160 items offered is a 12% enhance, contributing 89.9% to the trigger.

Of all of the passenger bodystyles, it’s the MPV that grew essentially the most (27.6%). That will be a shock, if not for the second-generation Perodua Alza, which had its first full yr of gross sales in 2023. Passenger vehicles grew by 11.2% and SUVs 9.7%. One automobile sort labeled as a CV however related to the carbuying public is the pick-up truck, which grew by a modest 1.5%.

Nationwide manufacturers, the engine of development

MAA now not releases gross sales figures by model, citing the Competitors Act, however they’re allowed to indicate us the nationwide vs non-national break up, and unsurprisingly, the nationwide manufacturers (Perodua and Proton) are persevering with their rise after dropping to beneath 50% market share from 2014 to 2018. That droop was largely as a result of Proton low contribution, however with Geely on the wheel, the tide has turned. We’ve achieved a deep dive on this altering pattern, so strap in your 200m watch and click on right here.

Final yr, Perodua and Proton offered a mixed 481,300 items, which interprets to 66.9% share of the passenger automobile market. That is up from 65.1% in 2022. Conversely, the non-national market share is now at 33.1%; that’s some 20% decrease than the N-N peak in 2014-2015. Nonetheless, there was development of 6% for the non-national makes, from 224,112 items in 2022 to 237,860 items.

Exponential development for EVs

Essentially the most eye-popping set of figures got here from electrified automobiles, which MAA manufacturers as ‘xEV’. This contains hybrids and full EVs, or BEVs (B for battery).

Final yr, xEV gross sales jumped 69% from 22,619 items in 2022 to 38,055 items, making up round 5% of the 2023 TIV. Of this complete, 28,055 items have been hybrids (BSG-type delicate hybrids are included) whereas 10,159 items have been battery electrical automobiles. Which means the year-on-year development for hybrids is 40%, whereas EV development is a large 286% from 2022’s 2,631 items.

MAA says that its gross sales information are solely from the affiliation’s members. New entrant Tesla isn’t an MAA member, so the precise development for EVs would have been barely larger as Mannequin 3 deliveries began in late November.

For 2024, MAA believes that the xEV demand and curiosity will proceed to develop due to authorities assist to advertise using these ‘greener’ vehicles, as effectively the introduction of extra new xEV fashions. Mohd Shamsor stated that this yr, the forecast is for xEVs to contribute 9-10% of TIV, and a couple of% for full EVs. Based mostly on MAA’s 2024 TIV forecast of 740,000 items, that will be as much as 74,000 xEVs and 14,800 EVs.

A comedown anticipated in 2024

MAA is anticipating TIV to average by 7.5% to 740,000 items this yr. Components cited embody macro ones such because the unsure outlook for the worldwide financial system as a result of ongoing wars and geo-political tensions. Whereas the Worldwide Financial Fund (IMF) had forecasted that world financial development would sluggish from 3% in 2023 to 2.9% this yr, the Malaysian financial system is anticipated to increase at 4-5% this yr, pushed by the home demand.

After all, a slew of serious new fashions are on monitor to be launched in 2024, and Financial institution Negara Malaysia’s resolution to keep the benchmark in a single day coverage charge (OPR) at 3% at the latest financial coverage committee assembly in November, are constructive factors.

Whereas borrowing prices usually are not anticipated to go up, shopper spending could decelerate as a result of considerations over the approaching focused subsidy rationalisation, excessive value of dwelling, implementation of the excessive worth items tax, and a larger service tax charge for some companies together with automobile after gross sales. Click on on the hyperlinks to learn extra concerning the cited components.

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