Automotive Report Malaysia
- ID: 2138411
- June 2016
- Region: Malaysia
- 13 Pages
- The Economist Intelligence Unit
Malaysia is Asia's eighth-largest producer of motor vehicles. In 2015 the country manufactured around 560,000 passenger cars and over 55,000 commercial vehicles. Vehicle production rose by 3.3%.
The government encourages self-sufficiency in the automotive industry and, although Malaysia exports and imports some vehicles, domestic sales and output are closely matched. Government policies will continue to aim at raising competitiveness and making Malaysia a centre for energy-efficient vehicles. In 2016-20 the country will remain an important regional market for motor vehicles and parts in the Association of South-East Asian Nations (ASEAN), but will encounter increasingly stiff competition from imports.
Vehicle sales growth slowed in the second half of 2014 after Bank Negara Malaysia (BNM, the central bank) lifted its main policy interest rate. Sales then surged in March 2015 as buyers pulled forward purchases ahead of the introduction of a 6% goods and services tax (GST) in April. The buying surge was followed by a sales slump. Overall, sales ended up flat for the year as a whole, according to the Malaysian Automotive Association (MAA).
Industry List: Automotive, Automotive, Commercial and other vehicles, Automotive, Fuel sources, Automotive, Passenger vehicles
Industry Codes (NAIC): 336
Industry Codes (SIC): 37