Automobile Association of Malaysia | Complete Overview of the Country’s Automobile Industry  

Malaysia is one of the prominent players in Southeast Asia’s automotive industry because it has particular features of interest in comparison to other markets. For UK readers fascinated by the world’s automobile markets, looking into Malaysia’s automobile ecosystem that includes the national car manufacturers, the Automobile Association’s role, and other industry specifics like TIV would be remarkable.  

What Car Brand is Malaysia Known For?  

The country has also been able to grow its own domestic car manufacturers whose two main brands are:  

Proton  

Founded in 1983 as Malaysia’s first national car manufacturer  

Initially partnered with Mitsubishi for some technological support  

Currently owned by DRB-HICOM, with Geely(Volvo’s mother company) as a huge shareholder  

Most popular models: Proton Saga, Proton X70 SUV, Proton Persona  

Perodua  

Incorporated in 1993 as the second national car manufacturer  

Has a joint venture with Daihatsu and Toyota Motors of Japan  

Specializes in small size vehicles that are easy on the pocket.  

Best selling models | Myvi, Perodua Axia, Perodua Bezza  

These Malaysian brands have multileveled domestic sales with the support of government protectionist policies and are starting to sell in other countries like the UK, but only to a few selective buyers.

What is the national car of Malaysia?  

Both Malaysia’s official national cars are:  

• Proton Saga (1985)  

• Perodua Kancil (1994)  

Proton Saga holds special importance in Malaysian culture as it is the indigenous car of Malaysia. Its first model, released in 1985, was a prototyped replica of the Mitsubishi Lancer Fiore model infused with local Malaysian features. The Saga that is sold today is already the seventh iteration of the ancestral named model.  

What is Automobile Association Malaysia?  

AAM is the national counterpart of UK’s AA or RAC, The Automobile Association of Malaysia was founded in 1963. It provides:  

• Complete form of breakdown assistance, 24/7 roadside assistance.  

• Checking or maintenance of motor vehicles.  

• Educational driving courses.  

• Media coverage about motorists and advocacy for their road security.  

• Route and insurance planning for holidays.  

Automobile Association Malaysia is one of the most important influences in the transportation of Malaysia and defends the interests of Malaysian drivers in international driver associations.

What TIV means in Malaysia  

TIV (Total Industry Volume) is the metric that benchmark the performance of the Malaysian automotive market. It involves:  

• Total number of new vehicles sold in a year  

• Covers both passenger vehicles and commercial vehicles  

• Segmented by vehicle type, make, and fuel used  

Latest figures of TIV are:  

• 2022: 720,658 units (post pandemic recovery)  

• 2023: Forecast 750,000 units  

• Leading the market are Perodua (35% share), Proton (20%), Toyota (12%)  

Investors and policymakers keep a close watch on TIV as a measure of Malaysia’s economic performance and consumer sentiment.  

Malaysia’s Automotive Policy Framework

Mark TIV in Malaysia has total industry volume as it provides great insights on the economic performance alongside consumer performance.

Malaysian With Sarawak’s Automotive Policy Framework

The proactive policy choices of Malaysian Government in relation to auto industry include:

1. National Automotive Policy (NAP)

Gives preference to local businesses.

Promotes Energy Efficient Vehicles (EEVs).

Provides direction to R&D activities which includes EVs. 

2. Protectionist Measures

Tariff barriers (300% tax on foreign cars, luxury cars taxed heavily).

Subsidized internal tax (excise duties on locally assembled cars are not imposed).

Import control via Approved Permit (AP) system.

3. Industrial Development

Established in 2010, Perak initiated development of Automotive High-Tech Valley.

Encouragement for E- vehicles- incentives offered.

Mandated local investment for foreign investors (foreign companies have to transfer some technology).

Comparison of Malaysia’s Car Market With The Uk

While the UK automotive industry centers around premium brands along with a used car market, Malaysia’s sector has its distinctions:

Factor	Malaysia	UK
Market Dominance	National brands (Perodua, Proton)	International brands (Ford, VW etc)
Price Sensitivity	Very price-conscious (avg income RM5k/mth)	More premium-focused
Vehicle Types	Compact cars, MPVs dominate	SUVs, crossovers popular
EV Adoption	Early stages (1% of TIV)	Rapid adoption (16.6% 2022)
Import Restrictions	Heavy protectionism	Open market

Import Restrictions Laissez faire policy Heavy protectionism. 

Proposed Developments In Malaysia’s Auto Industry

Vertical Integration Of Electric Vehicles

• By 2030, the government aims to achieve a 15% EV share.
• New infrastructure for charging stations is underway.
• Tax benefits are being offered to buyers of electric vehicles. 

Asian Integration Expansion of sales to neighboring countries.

• Establishment of a regional supply chain.

Technology Partnerships

• New technological developments due to the Proton- Geely collaboration

• Perodua and Daihatsu are working towards developing a hybrid system for vehicles.

Effects of Ride Hailing

• Car-sharing services like Grab change how people use cars. 

• Development of car subscription services.

Frequently Asked Questions

Q: Are Malaysian cars available in the UK? 

A: Not widely available. Some Proton models were historically available in the UK such as the Proton Gen-2, however, there are currently no official UK importers. 

Q: Are Malaysian cars dependable? 

A: The more modern models of Proton and Perodua have significantly enhanced quality and are now performing rather well in the ASEAN NCAP safety tests.

Q: Why does Malaysia have national car makers? 

A: This was part of an 1980s policy on industrialization aimed at encouraging domestic manufacturing and reducing reliance on imports.

Final remark

There is a gap in the existing literature of national industry policies on Malaysia’s automotive industry. From the Proton Saga as their icon to the Perodua Myvi which leads in sales, Malaysia’s automotive brands have established a presence in the global automotive industry. The APIAM offers essential support to drivers while measuring TIV enables monitoring of maturing markets.

Automotive industry is still evolving in Malaysia, providing insight for other developing motor markets while the country’s shift towards electric vehicles and further intra regional cooperation progresses. For UK automobile fans, learning about Malaysia’s automotive industry reveals important insights on how changing policies in different nations influence the global car industry.