Malaysia’s automotive industry is hitting the accelerator. In a significant shift within Southeast Asia’s car market, Malaysia has officially overtaken Thailand in total vehicle sales for 2024—marking a milestone that not only showcases national progress but also sets the stage for a bigger goal: challenging Indonesia’s long-standing dominance in the region.
The Malaysia Automotive Association (MAA) reported that a total of 816,747 cars were sold domestically in 2024, a 2.1% increase compared to the previous year. This rise comes amid global economic uncertainties and regional trade tensions—making Malaysia’s performance even more impressive. What sets this achievement apart is the fact that it wasn’t just the result of organic demand, but the outcome of deliberate national policy. From full sales tax exemptions to comprehensive industrial strategies, Malaysia’s success has been built on a solid foundation of economic planning and strategic incentives.
At the heart of this transformation is the National Automotive Policy 2020 (NAP2020), which targets a 10% contribution from the automotive sector to Malaysia’s GDP by 2030. Coupled with the New Industrial Master Plan 2023 (NIMP 2023), these policies have turned the country into an attractive hub for automotive manufacturing, particularly for electric vehicles (EVs). Through targeted investments in supply chains, EV charging infrastructure, and technology partnerships, Malaysia is not only boosting car ownership—it’s preparing for the future of clean mobility.
That preparation is already bearing fruit. In 2024, Malaysia’s battery electric vehicle (BEV) segment jumped 19% year-on-year, reaching 45,562 units sold. BEVs now account for 5.6% of total car sales, up from just 1.27% the year before. This rapid growth shows how Malaysia is catching up fast with global EV trends, and doing so in a way that benefits both consumers and the local economy.
Meanwhile, Thailand—long considered a regional automotive heavyweight—is losing ground. In the same year, vehicle sales in Thailand plunged by 26.18%, falling to 572,675 units. Even its BEV market, once a source of pride, declined by over 9%. The downturn has been blamed on a combination of factors, including economic slowdown, tight lending conditions, and a rise in non-performing loans (NPLs). With consumer confidence shaken and access to financing limited, Thai buyers have become increasingly cautious—leading to the country’s weakest automotive showing in over a decade.
In contrast, Malaysia is building confidence. The country’s continued growth, both in traditional and electric car segments, stands in stark contrast to the challenges faced by its northern neighbor. And now, all eyes are on Indonesia.
Indonesia remains Southeast Asia’s largest car market for now, with 865,723 units sold in 2024. But that figure represents a decline from the over 1 million cars sold in both 2022 and 2023. In fact, the gap between Malaysia and Indonesia has shrunk to just 5.9%—the narrowest in years. At the same time, Indonesia’s BEV sales also grew sharply to 43,188 units, accounting for 5% of its total market. It’s a strong showing, but still just behind Malaysia’s 5.6%.
These shifts in numbers tell a bigger story. Malaysia is no longer just a mid-level player in the region. With the Proton brand gaining renewed strength, foreign automakers expanding local production, and EV policies clearly paying off, Malaysia is positioning itself as a serious contender in the race for automotive leadership in ASEAN.
Whether or not Malaysia surpasses Indonesia in the coming years remains to be seen. But if 2024 is any indication, the country is not only catching up—it’s doing so with vision, precision, and purpose. The road ahead is wide open, and Malaysia seems ready to drive it.
A New Kind of Leadership for ASEAN’s Auto Industry
What we are witnessing is more than a shift in sales rankings. Malaysia’s rise reflects a deeper industrial transformation—one powered by smart policy, public-private collaboration, and future-oriented thinking. It’s not just about how many cars are sold, but about how an entire ecosystem is evolving.
By integrating manufacturing incentives, consumer-friendly tax breaks, and sustainability goals, Malaysia is crafting a blueprint for what the next phase of automotive leadership in Southeast Asia could look like. While the EV transition in the region is still in its early stages, Malaysia has made it clear: it doesn’t intend to follow—it plans to lead.
The numbers may fluctuate year by year, but the momentum is now in Malaysia’s favour. And if the country can maintain this pace—while continuing to invest in clean energy, innovation, and export readiness—it won’t just be aiming to catch up. It’ll be setting the pace for the entire region.
