Malaysia market figures
- 4.1% GDP growth projected by 20261
- 38.7 million registered vehicles2, surpassing the population and reflecting a high car ownership rate3.
- 7.5% CAGR growth expected for the aftermarket from 2026 to 20334
- 6.5% CAGR expected for the used car market from 2025 to 20305
- World No 1 in Open Data Rankings, signifying strong innovation and development6
Is Malaysia competitive in the gloabl supply chain?
Leading role in ASEAN automotive market
Malaysia’s automotive market is rapidly advancing with a skilled labour force, improved infrastructure, and technological breakthroughs. For instance, in the first quarter of this year, the country passed Indonesia in ASEAN car sales7. In addition, economic momentum and industry initiatives are attracting investment, and creating an emerging hub for innovative and sustainable mobility in Asia8.
Notable investments from both carmakers and tier0one suppliers
Recent major investments by BAIC, Changan Automobile, Great Wall Motor and tier-one suppliers like EP Manufacturing signal a profound transformation in Malaysia’s automotive ecosystem. These deals collectively involve over RM 1.1 billion (USD 264 million) and the establishment of advanced assembly plants targeting right-hand drive EVs and energy-efficient vehicles (EEVs)9, positioning the country as a production and innovation hub for ASEAN.
What are the key drivers of the market?
E-commerce boom: transforming vehicle usgae and logistics in Malaysia
Malaysia’s e-commerce market is one of Southeast Asia’s fastest growing, valued at USD 10.69 billion in 2025 and is forecast to double to USD 22.16 billion by 203010, driving strong demand for commercial and passenger vehicles, modern fleets, and advanced logistics solutions. This has accelerated investments in automated warehouses, digital fleet management, and new energy vehicles (NEVs).
Artificial intelligence integration
AI is expected to be increasingly integrated into automotive manufacturing for tasks like quality control, predictive maintenance, and supply chain management11. As of 2025, nearly 78 percent of manufacturers have adopted AI for autonomous driving, smart factories, and production lines11.
Sources:
1. “OECD Economic Outlook, Volume 2025 Issue 1: Malaysia”, 3 June 2025, OECD, https://www.oecd.org/en/publications/2025/06/oecd-economic-outlook-volume-2025-issue1_1fd979a8/full-report/malaysia_6a857716.html (Retrieved: July 2025)
2. “Malaysia’s low public transport usage, more registered cars than driver population worries DPM Ahmed Zahid”, 15 May 2025, Paul Tan’s Automotive News, https://paultan.org/2025/05/15/malaysias-low-public-transport-usage-more-registered-carsthan-driver-population-worries-dpm-ahmad-zahid/ (Retrieved: July 2025)
3. “Population of Malaysia”, Worldometers, https://www.worldometers.info/worldpopulation/malaysia-population/ (Retrieved: July 2025)
4. “Malaysia Automotive Interior and Exterior Parts Market Size, Trends, Major Competitors | Forecast Challenges 2033”, 2 June 2025, The Trending Market News, https://www.linkedin.com/pulse/malaysia-automotive-interior-exterior-parts-market-smehc/ (Retrieved: July 2025)
5. “Malaysia Used Car Market Size & Share Analysis – Growth Trends & Forecast (2025 – 2030)”, Mordor Intelligence, https://www.mordorintelligence.com/industry-reports/malaysiaused-car-market (Retrieved: July 2025)
6. “Malaysia Makes History As World No. 1 In Open Data Rankings”, 30 April 2025, The Rakyat Post, https://www.therakyatpost.com/news/2025/04/30/malaysia-makes-history-asworld-no-1-in-open-datarankings/#:~:text=Malaysia%20has%20been%20globally%20recognised,(ODIN)%202024%2 F25. (Retrieved: July 2025)
7. “Malaysia overtakes Indonesia as ASEAN’s leading car market, Thailand shows recovery amid Japanese exit”, 6 August 2025, The Nation https://www.nationthailand.com/business/automobile/40053649
8. “Malaysia Automotive Interior and Exterior Parts Market Size, Trends, Major Competitors | Forecast Challenges 2033”, 2 June 2025, The Trending Market News, https://www.linkedin.com/pulse/malaysia-automotive-interior-exterior-parts-market-smehc/ (Retrieved: July 2025)
9. “Malacca Ready to Be a Key Electric Vehicle Hub in Malaysia”, 15 May 2025, Australian Fleet Management Association, https://afma.org.au/malacca-ready-to-be-a-key-electricvehicle-hub-in-malaysia/ (Retrieved: July 2025)
10. “Malaysia E-Commerce Market Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)”, Mordor Intelligence, https://www.mordorintelligence.com/industry-reports/malaysiaecommercemarket#:~:text=Malaysia%20E%2Dcommerce%20Market%20Analysis,are%20being%20solv ed%20at%20scale. (Retrieved: July 2025)
11. “Malaysia Automation in Automotive Market Size, Trends, Major Competitors | Forecast Challenges 2033”, 3 June 2025, Creative Core Function, https://www.linkedin.com/pulse/malaysia-automation-automotive-market-size-trends-majorriwjf/ (Retrieved: July 2025)
12. "How AI is Driving the Future of the Automotive Industry in 2025”, 26 May 2025, Syndell, https://syndelltech.com/ai-in-automotive-industry-2025/ (Retrieved: July 2025)
