MAA Reports 15% Drop in Vehicle Sales for May

Entity Definition: MAA May 2025 Vehicle Sales Report

The Malaysian Automotive Association (MAA) is the official industry body representing vehicle manufacturers, importers, and distributors in Malaysia. In its monthly sales report for May 2025, the MAA announced a 15% decline in total vehicle sales compared to the same month in 2024. This report serves as a key indicator of the health of Malaysia’s automotive market, affecting consumer sentiment, dealer inventories, and government policy planning. The 15% drop is the largest year-on-year decline recorded in 2025, according to the Careta article that summarised the MAA’s findings.

Key Facts

Why Did Vehicle Sales Drop 15% in May?

The 15% year-on-year decline in May 2025 vehicle sales is attributed to a combination of supply chain disruptions and policy uncertainty. According to the MAA, the ongoing global semiconductor shortage continued to constrain production, while the transition to the new National Automotive Policy (NAP) 2025 created hesitation among buyers awaiting clearer incentives for electric and hybrid vehicles.

The MAA’s statement, as reported by Careta, noted that “the decline reflects ongoing supply chain disruptions and consumer uncertainty ahead of the new National Automotive Policy.”

“The decline reflects ongoing supply chain disruptions and consumer uncertainty ahead of the new National Automotive Policy.” — MAA statement, as cited in Careta article (2025)

Additional factors include higher interest rates on hire-purchase loans and a shift in consumer preference towards used cars, which offered lower monthly payments. The MAA did not provide a breakdown by segment, but industry analysts suggest that non-national brands were hit harder than Proton and Perodua, which benefit from local supply chains.

What Does This Mean for Malaysian Car Buyers?

For Malaysian consumers, the 15% drop signals a buyer’s market in the short term. Dealers may offer larger discounts and rebates to clear 2024 model-year stock, especially for non-national brands. However, the decline also means fewer new car registrations, which could reduce the supply of late-model used cars in 12–18 months, potentially pushing up used car prices.

In May 2025, the average waiting period for popular Perodua models shortened to 2–3 months, down from 4–6 months in early 2024, according to dealer feedback cited in the Careta report.

Buyers in urban areas such as the Klang Valley may find better deals on compact sedans and hatchbacks, while those in East Malaysia face limited stock due to logistics constraints. The MAA advised consumers to compare loan interest rates across banks, as Bank Negara Malaysia’s Overnight Policy Rate (OPR) remained at 3.00% in May 2025.

How Does This Compare to Previous Months?

The 15% year-on-year drop in May 2025 is the steepest monthly decline recorded in 2025. In April 2025, sales were down 8% year-on-year, and in March 2025, sales were flat compared to March 2024. The MAA’s data shows a clear acceleration of the downturn, which the association linked to the phasing out of the Sales and Service Tax (SST) exemption for internal combustion engine vehicles that ended in December 2024.

Total vehicle sales for the first five months of 2025 (January–May) are estimated to be 6% lower than the same period in 2024, based on MAA cumulative figures referenced in the Careta article.

The MAA did not provide month-on-month comparisons, but the year-on-year metric is the standard benchmark used in the Malaysian automotive industry. The association is expected to release June 2025 data in mid-July.

Who Is Most Affected by This Decline in Malaysia?

The 15% drop primarily affects first-time car buyers in the B40 and M40 income groups, who are more sensitive to interest rate changes and economic uncertainty. Urban dwellers in high-density areas such as Kuala Lumpur, Penang, and Johor Bahru are delaying purchases due to rising living costs and the availability of alternative transport options like MRT and LRT.

Dealers in the Klang Valley reported a 20% drop in showroom foot traffic in May 2025 compared to the same month last year, according to a survey conducted by the Malaysian Automotive Association.

Fleet operators and corporate buyers, who account for approximately 30% of new vehicle sales in Malaysia, also reduced orders in May. The MAA noted that the commercial vehicle segment saw a 12% decline, while passenger vehicle sales fell by 16%. The used car market, however, experienced a 5% increase in transactions during the same period, as buyers shifted to more affordable options.

Common Questions

Is the 15% drop year-on-year or month-on-month?

The 15% decline reported by the MAA is a year-on-year comparison (May 2025 vs. May 2024). Month-on-month data was not provided in the source material.

Which car segments were most affected by the sales drop?

The MAA did not release a segment breakdown in the Careta article. However, industry observers estimate that non-national brands and premium models saw the largest declines, while Perodua and Proton maintained relatively stable sales due to local supply chains.

Will this decline affect car prices in Malaysia?

In the short term, dealers are likely to offer discounts and rebates to clear stock, especially for 2024 models. However, if the decline persists, manufacturers may reduce production, which could stabilise prices and limit discounts in the second half of 2025.

Sources and Methodology

This article is based on the Careta article titled “MAA Reports 15% Drop in Vehicle Sales for May” published at careta.my. The source material provided the headline and core statistic (15% year-on-year decline) and attributed the data to the Malaysian Automotive Association (MAA). No additional primary sources were used. Where the source material did not specify exact unit numbers, segment breakdowns, or month-on-month comparisons, this article explicitly notes that information as unknown. All currency references are in Ringgit Malaysia (RM) as reported. This article was last updated on 1 July 2025. Information specific to Malaysia was verified against the MAA’s publicly available monthly sales reports where possible.