Malaysia Overtakes Thailand as Southeast Asia’s Second-Largest Auto Market on Boost From China

00:00

00:00/00:00

Listen to this article 1x

A Proton car. Photo: IC Photo

Malaysia has replaced Thailand as Southeast Asia’s second-largest auto market, industry data showed, thanks to the jump in investment and contributions by Chinese automakers to that country’s carmakers.

Malaysia’s sales figures, which had long been third largest, topped Thailand for three consecutive quarters through the January-March period this year, according to data compiled by Nikkei Asia.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Malaysia has become Southeast Asia's second-largest auto market, surpassing Thailand, thanks to Chinese automakers and increased investments.
In Q1 2023, Malaysia's car sales rose by 5% year-on-year to 202,245 units, with local brands Perodua and Proton contributing significantly.
Zhejiang Geely’s involvement in Proton has driven its sales growth, with plans to double Proton's production capacity to 500,000 units annually by 2035, and expand its supply chain globally.

AI generated, for reference only

Who’s Who

Zhejiang Geely Holding Group Co. Ltd.: Zhejiang Geely Holding Group Co. Ltd. has significantly impacted Malaysia's auto market by acquiring a 49.9% stake in Proton in 2017. This boosted Proton's sales, introduced new models, and plans to help Proton double production to 500,000 units annually by 2035, with half for export. They aim to establish a supply chain for 1 million parts sets, half for the global market, and have launched the X90 new-energy vehicle, supported by Malaysian government policies for green energy transition.

Proton: Proton's sales have grown for five consecutive years, reaching 154,611 units in 2023, a 9.3% year-on-year increase. After Zhejiang Geely acquired a 49.9% stake in 2017, Proton was transformed with new models gaining popularity, especially among young people. Geely plans to help Proton double its annual production to 500,000 units by 2035, with 50% for export, and build a supply chain system for 1 million parts, supporting Malaysia’s green energy transition.

Perodua: Perodua is a local Malaysian car brand that, along with Proton, benefited from a sales tax exemption during the Covid pandemic. It contributed to the growth in Malaysia's car sales, with Perodua and Proton together accounting for about 60% of the market.

AI generated, for reference only