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In 2024, the two local automotive manufacturers held the largest market share, accounting for more than ** percent of the total passenger car sales in Malaysia. The Malaysian automotive industry has not always been as strong, but it has been back on track lately due to wise choices made by all market participants. 

The beginning of the Malaysian automotive industry

The Malaysian automotive companies Proton and Perodua were founded in the late 20th century with strong support from the Malaysian government. Both manufacturers were supposed to reflect the country's technological progress and strengthen the nation-building process. Therefore, protectionist measures were taken to weaken international brands on the local market. In the beginning, it seemed like both companies were able to reach their goal of being market leaders. However, due to the lack of cooperation between the companies and an isolation on the global market as a result of the protectionist measures, Malaysian cars eventually were no longer comparable to the international standard. The sales figures started to drop, and Japanese manufacturers managed to conquer the market despite the trade barriers imposed by the government.

Malaysia’s automotive manufacturer’s return to success

In recent years, in order to save the domestic industry, the government slowly started opening the market for foreign manufacturers. As a result, not only were foreign companies able to enter the market, but Perodua and Proton also had the opportunity to establish collaborations for knowledge sharing and car improvement. Furthermore, the Malaysian government continues to support the local automobile manufacturers with a sales tax exemption for locally assembled models. All this has resulted in Perodua selling over ** cars and Proton over ** cars in 2024.