Malaysia has quietly surged past Thailand to claim the second spot in Southeast Asia’s car sales for 2024, moving over 816,000 units — and it’s now just a step behind Indonesia, which remains the region’s leader.
This leap is largely thanks to government incentives that haven’t been lifted since the pandemic, alongside lower car ownership costs and lenient taxes that have made vehicles far more accessible to the average Malaysian.
Compared to Indonesia, where owning a Toyota Avanza could cost US$245 a year in taxes, Malaysians pay just a fraction of that — and aren’t burdened with document renewal fees every few years.
According to GAIKINDO, these policy gaps are transforming car ownership into a necessity in Malaysia, especially for everyday workers, while prompting Indonesia to reconsider whether its own tax system is holding consumers back.
As Malaysia gains ground, it’s clear the regional auto race is shifting — and competition for the top spot is more intense than ever.
