PETALING JAYA: Malaysia’s automotive landscape is undergoing a transformation driven by changing consumer preferences, with local manufacturers Perodua and Proton gaining strong favour, SUVs outpacing traditional sedans in popularity, and growing interest in electric vehicles (EV) reshaping the market.
Hamawangsa Kredit Sdn Bhd head Nizam Arifin (pix) stated that consumers are increasingly favouring domestic brands over foreign options due to their affordability, reliability, and accessibility.
“Established local names such as Proton and Perodua have solidified their positions by offering competitive pricing, appealing features, and enhanced product quality. Recent data from the Malaysian Automotive Association (MAA) indicates that local brands accounted for 64% of total car sales in July 2023, while foreign brands constituted 36%,” he told Sunbiz.
Meanwhile, SUVs are capturing consumer attention with their versatility, spaciousness, and appealing aesthetics.
“Consumers are drawn to SUVs for their enhanced comfort, convenience, and safety features. MAA data underscores this trend, revealing that SUVs captured a 23% share of total car sales in July 2023, while sedans held a 19% share,” explained Nizam.
Additionally, consumers’ heightened environmental awareness and interest in fuel efficiency are also influencing purchasing decisions.
“This surge in interest in hybrid and EVs mirror a consumer desire to minimise carbon footprints and reduce fuel consumption,” he said.
MAA’s data highlights that hybrid and EVs collectively comprised 2% of total car sales in July 2023, with conventional vehicles accounting for the remaining 98%.
Nizam said the escalating popularity of EVs from manufacturers like BYD and Tesla is a driving force behind these changes.
“The growth in EV sales is underpinned by environmental advantages, government incentives, and an increasing awareness of long-term cost efficiency. This resonates particularly with eco-conscious younger consumers. This shift is anticipated to gain momentum as consumer awareness of EV benefits deepens, complemented by ongoing enhancements in EV charging infrastructure,” he said.
Chinese firm BYD Auto Industry Co Ltd (BYD), China’s top-selling car brand, participates in Malaysia’s EV market, riding the global trend towards EVs.
In partnership with local entity Sime Darby Motors, BYD plans to invest RM500 million across two years to establish an extensive network of BYD showrooms.
In the Malaysian context, BYD aims to achieve an annual sales volume of 3,000 units for the Atto 3 model, offered in two variants with prices starting at RM149,800 for the standard range and RM167,800 for the extended range.
Tesla Inc and BYD Co have achieved recent sales records in the second quarter, further solidifying their positions as leading clean automakers worldwide. Tesla set a record by delivering 466,140 cars globally during the reported period.
Meanwhile, BYD posted all-time best quarterly sales of 700,244 new-energy vehicles, evenly split between fully electric and plug-in hybrids.
Moreover, he stated that significant demographic and economic factors contribute to these changes.
The younger generation’s tech-savvy and adventurous nature is shaping demand for innovative car models. Their use of online platforms adds to their impact.
Meanwhile, the middle-income segment’s increased purchasing power is driving demand for premium and luxury car models, aided by low-interest rates and flexible financing options.
The rural and suburban consumer segment, characterised by heightened mobility needs and longer travel distances, is spurring demand for practical and rugged car models suited to diverse road conditions.
Source: The Sun Daily
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