Malaysia’s new vehicle market plunged by 27% to 48,732 units in January 2025 from strong year-earlier sales of 66,923 units, according to registration data released by the Malaysian Automotive Association (MAA). Compared with December, the market was down by 40%.

The sharp decline has been mostly blamed on fewer working days in January compared with last year due to the Lunar New Year holidays, with buying activity also dropping back sharply following record sales in December due to strong year-end promotional activity. The market has rebounded strongly over the last three years from the pandemic lows, with sales growing to new record highs in the last two years, so a pull-back had been widely expected.

Economic growth remains strong in Malaysia, according to the latest government data, with GDP growth slowing slightly to 5.0% year-on-year in the fourth-quarter of 2024 from 5.3% in the previous quarter. This reflected slower growth in manufacturing, mining, agricultural output and fixed investment, which was offset in part by a pick-up in private consumption.

Sales of passenger vehicles fell by 25% year-on-year to 45,339 units in January, while commercial vehicle sales plunged by 45% to 3,393 units. Battery electric vehicle (BEV) sales increased by 21% to 1,691 units, helped by the recent launch of the Proton e.MAS7, while hybrid sales rose by 7% to 2,249 units.

Total vehicle production last month fell by 26% to 56,889 units. The association said it expects the local market to have improved in February compared with January.

Proton’s global sales fell by 23% to 9,914 units in January, despite 421 sales of its newly-launched e.MAS7 BEV – with a further 4,000 orders in the pipeline. The Saga remained by far the company’s best-selling model – despite deliveries falling by 25% to 4,597 units; followed by the Geely-based X50 compact SUV with 1,436 units; and the Geely-based S70 sedan with 1,143 units. Exports almost doubled year-on-year to 200 units.

UMW Toyota Motor’s sales fell by 14% to 5,383 units last month, with volumes supported by strong promotional activity.

Perodua, the country’s largest automaker, has yet to report its deliveries for January, after its sales increased by 8% to a record 358,102 vehicles last year. The company plans to launch its first BEV later this year, with a price target of under MYR100,000 (US$22,280).