Forecast: Passenger Cars in Use in Malaysia

The passenger cars in use in Malaysia saw consistent growth from 10.63 million units in 2013 to 14.43 million units by 2023. The year-on-year variation between 2022 and 2023 was a modest 2.09%, following a significant jump in 2021. The CAGR over the last five years (2018-2023) averaged at 2.28%. The 2020 decline (-15.03%) was a notable outlier likely due to the pandemic-related disruptions.

Between 2024 and 2028, the passenger car market is projected to grow, reaching 15.93 million units in 2028. The forecasted 5-year CAGR stands at 1.61%, indicating steady albeit slower growth compared to the previous decade.

Future trends to watch for:

• The adoption of electric vehicles (EVs) driven by governmental policies and subsidies.
• Changes in consumer preferences towards ride-sharing and car subscription models.
• Impact of economic fluctuations on car ownership rates.