President Shamsor Zain said the forecast for the total industry volume (TIV) comprises a higher number of passenger vehicles at 696,150 units, and a lower number of commercial vehicles at 68,850 units, versus the initial estimates of 666,000 and 74,000 units, respectively.

“Factors contributing to the higher TIV include the resilient domestic economy.

“Besides, Malaysia’s gross domestic product (GDP) is well placed to expand within the official forecast range of 4% to 5%,” he said at a press conference.

He said Bank Negara Malaysia (BNM)’s decision to maintain the overnight policy rate (OPR) at 3% is another key factor that will sustain the automotive market.

Shamsor said the healthy backlog orders, especially in the A segment passenger cars market coupled with strong new players with more new model launches, remain key to the revised forecast.

“The MAA members’ continuation of aggressive promotional strategies and providing value-added services and more options to customers will lead to improved demand,” he said.

Shamsor noted that TIV for the first half of 2024 (H1 2024) rose 6.6% to 390,296 units from 366,176 in the same period in 2023, with passenger cars contributing mostly to the biggest volume increase.

He added that the total industry production for H1 2024 also grew 8.1% to 392,052 units from 362,535 in 2023.