CIMB Securities and Maybank Investment Bank Research predicted 755,000 and 750,000 units respectively (lower than the record 800,000 units expected this year), but Kenanga Investment Bank has gone the other way, expecting 805,000 new cars to be sold in Malaysia in 2025, Bernama reports.
The investment bank said the higher projection was backed by bigger pie slices encompassing a volume-driven affordable segment, citing Perodua’s sustained over-90,000-unit order backlog, steady monthly deliveries and new launches replacing older generation vehicles (the Bezza is almost nine years old and the third-gen Myvi turns eight next year – both have yet to be DNGA-ed).
It added that the upcoming targeted RON 95 subsidies should drive mid-market buyers to down-trade to more fuel-efficient cars, including hybrids, EVs and Energy Efficient Vehicles (EEV). Plus, more Chinese carmakers could ramp up their local assembly (CKD) efforts, potentially boosting their market share.
“We also anticipate a mid-term review of the National Automotive Policy (NAP) to include hybrid vehicles as a key transition to the national target for EV and hybrid vehicles of 15% of TIV by 2030 and 38% by 2040,” Kenanga IB said in a research note today.
In fact, the latest national target is for EVs (battery-electric vehicles) to make up 20% of Malaysia’s total industry volume (TIV) by 2030. We’re currently hovering around the 5% mark – is the introduction of hybrids supposed to help us get there faster?
“We expect more favourable incentives from the government which has set a national target for EVs and hybrid vehicles of 15% of TIV by 2030 and 38% by 2040. Meanwhile, the government will speed up the approval for charging stations. The number of proposed charging stations is currently at 4,235 (3,354 built to date) and this should more than double to 10,000 by end-2025,” it added.
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