Industry analysts are forecasting robust new car demand in Malaysia for the remainder of 2025, spurred by expectations of vehicle price hikes ranging from 10% to 30% starting January 2026. The anticipated increase stems from the upcoming implementation of new Open Market Value (OMV) duties, which will affect the way excise duties are calculated for imported and locally assembled vehicles.
Buyers are expected to advance their purchase decisions to avoid higher costs, resulting in a short-term boost to vehicle sales in the second half of the year. Automotive brands are also likely to ramp up promotional campaigns to capitalize on this preemptive buying wave.
The Malaysian Automotive Association (MAA) has maintained its forecast of 780,000 total industry volume (TIV) for 2025, a slight pullback from the record 816,747 units sold in 2024. Despite the drop, the figure remains historically high, reflecting the strength of pent-up demand, favorable financing conditions, and increased consumer awareness around potential regulatory changes.
According to MAA President Datuk Aishah Ahmad, the expected surge in late-year buying activity may help offset slower months caused by public holidays and production pauses. “While we anticipate some challenges from festive season closures and global economic uncertainties, the OMV factor will likely drive momentum in Q3 and Q4,” she said.
Automotive players are now closely monitoring government updates for clarity on OMV calculations, which could significantly reshape pricing strategies for both mass-market and premium segments.
As the market braces for the shift, dealerships across Malaysia are preparing for an influx of buyers looking to secure current prices before the 2026 changes take effect.
