Kota Kinabalu: The Federal Government’s yet-to-be-fixed petrol subsidy rationalisation scheme planned for mid-2025, which could raise cost of living, is being blamed for weakened vehicle sales.
The Malaysian Automotive Association said the total industry volume (TIV) or new car registrations weakened month-on-month in November.
AdvertisementMajor carmakers reported softer sales. Malaysia’s automotive sector is expected to face weaker sales for non-national cars.
Malaysian Automotive Association President Mohd Shamsor Mohd Zain said there is an impact on commercial vehicle sales due to buyers’ wait-and-see attitude.
Mohd Shamsor, who is also UMW Toyota Motor’s Marketing Group Director, reiterated the association’s stance when it came to the removal of RON95 petrol subsidies, noting that hybrid and electric vehicles (EVs) may help minimise the impact.
Top selling brand Toyota declined 6.7 per cent month-on-month, followed by top selling national car brand Perodua that dipped 5.7 per cent. RHB Investment Bank analysts believe the TIV could fall 8 per cent in 2025 to 730,000 units, versus 790,000 units recorded for 2024.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});“We remain cautious in our outlook for next year, given the ongoing price competition between the non-national marques,” RHB analysts said. “Softening order backlogs also indicate toned-down expectations for 2025.”
The entry of Chinese EV brands may erode market shares of incumbents as some car buyers may postpone their purchases to await the level of Ron95 petrol price without government subsidy and open market value (OMV) revisions.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});According to Bumiputera Petrol Station Operators Association of Malaysia (Bumipeda) honorary secretary Datin Hanny Julia Haron, the subsidy rationalisation for diesel fuel in Peninsular was a severe economic challenge for operators.
“About 98 per cent of petrol stations are reportedly suffering losses from petrol and diesel sales, forcing many to shift their focus to convenience store operations in a bid to offset declining fuel revenues,” Hanny Julia said, opining that the current trend could lead to higher unemployment rates and reduced government revenues from taxes and levies.
Hanny Julia said the closures of stations, or scaled-down operations would also disrupt local economies, which will affect businesses like workshops.
The removal of the RON95 subsidy could act as a catalyst for EV growth.
Sime Darby Bhd is expected to benefit, leveraging its expanding EV portfolio, which includes BMW, Mini, Porsche, BYD, and Volvo. Bankers also noted that Sime Darby Bhd is “well positioned” with its broad electric vehicle line-up.
