Forecast: Passenger Cars Production in Malaysia

The production of passenger cars in Malaysia has experienced significant fluctuation over the past decade. From 2013 to 2023, the production volumes displayed both growth and declines. 2013 saw a strong production increase of 11.37%, and modest increments followed in 2014 and 2015 by 2.41% and 3.69%, respectively. However, the production sharply declined by 11.31% in 2016, followed by further drops and modest recoveries through 2017 to 2019.

The year 2020 witnessed another substantial decrease of 14.69%, and the downward trend continued slightly into 2021 with a 1.84% fall. The significant rebound of 45.65% in 2022 brought hope, but this was followed by another substantial decline of 28.19% in 2023, resulting in a production volume of 466.9 thousand units in that year.

Examining the longer trend, the compounded annual growth rate (CAGR) for 2017-2022 was 7.19%, but for 2018-2023, it dropped to -2.22%. Looking ahead to 2028, the forecasted 5-year CAGR is estimated at -1.03%, suggesting a gradual decline with a total expected reduction of 5.04% over these years.

Future trends to watch for:

- The impact of global economic conditions on automotive demand and production.

- The influence of government policies and incentives for the automotive sector.

- Technological advancements and shifts towards electric vehicle production.

- Potential market entry by new automotive manufacturers and increased competition.