Malaysia Automotive Sector Report 2025-2026

In 2023, Malaysia continued to consolidate its position as the third-largest four-wheel motor vehicle manufacturer (behind Thailand and Indonesia) and the second-biggest four-wheel motor vehicle market (behind Indonesia) in the ASEAN region. Passenger vehicles are the stellar product of the Malaysian automotive industry as they represented the bulk of motor vehicle production and sales (including motorcycles) in 2023. This strong performance in the production and sales of passenger vehicles is mainly explained by the solid presence of two national brands (Perodua and Proton) which consolidated their position as the largest producers and sellers of passenger vehicles in the country. There is also a strong contribution of six Japanese companies (Toyota, Honda, Mitsubishi, Isuzu, Mazda and Nissan) which produce and sell not only passenger vehicles but also commercial vehicles in Malaysia. After the negative effects of the COVID-19 pandemic in 2020 and 2021, the production and sales of the three main segments of the automotive industry (passenger vehicles, motorcycles, and commercial vehicles) reported strong rebounds in a context marked by a strong economic recovery. However, in 2023, the automotive industry showed signs of market saturation in motorcycles and commercial vehicles, while passenger vehicle production and sales managed to keep the expansion trend. Concerning external trade, the Malaysian automotive industry presents relatively low levels of international competitiveness as the country has chronic trade deficits in motor vehicles and auto parts.

This report provides a complete and detailed analysis of the "Auto manufacturing" sector for Malaysia. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Auto manufacturing" sector in Malaysia
• Crystallise the forces both driving and restraining this sector in Malaysia
• Ascertain Malaysia’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in Malaysia.
• Build a clear picture of trends, output and consumption for specific sub-sectors