Navigating the Landscape of Malaysia Automotive Aftermarket Market

Navigating the Landscape of Malaysia Automotive Aftermarket Market

May 07, 2024

Malaysia automotive aftermarket market has experienced significant growth in recent years. As a country with a rapidly developing automotive sector, Malaysia offers attractive opportunities for market players to expand their business reach and capitalize on emerging trends.

Tekhne's General Manager, Chong Chee Kong, stated that the added value in the automotive product market is projected to reach US$8.32 billion (RM39.79 billion) by 2024, with a combined annual growth rate estimated at 5.71% (CAGR 2024–2028). Meanwhile, the output in the Automotive Products market is projected to reach US$33.48 billion by 2024, with a combined YoY growth rate of 7.24% (CAGR 2024–2028).

Driving Factors of Malaysia Automotive Aftermarket Market Growth 

Several driving factors contribute to the growth of Malaysia automotive aftermarket market. One of them is the increasing number of vehicles in Malaysia, resulting in higher demand for spare parts and aftermarket services. 

Additionally, the adoption of new technologies in the automotive industry, such as electric and autonomous vehicles, triggers demand for more advanced and innovative spare parts. The sale of used cars in Malaysia is also increasing, contributing to the growth of the automotive aftermarket industry.

On the other hand, consumer awareness of the importance of vehicle maintenance and selecting quality spare parts has also increased. Consumers are becoming more aware that using high-quality spare parts can improve vehicle performance, extend lifespan, and enhance driving safety. As a result, they tend to seek reliable and trustworthy spare parts and aftermarket services.

Segmentation of the Malaysia Automotive Aftermarket Market 

The aftermarket services market in Malaysia is divided into several segments, including workshop types, vehicle types, vehicle age, vehicle brands, regions, and marketing methods.

Based on workshop types, the aftermarket services market consists of OEM (original equipment manufacturing) and REM (replacement equipment manufacturing). REM workshops dominate the car service market in Malaysia due to the increasing number of post-warranty cars.

Based on vehicle types, Malaysia automotive aftermarket market segment is divided into Sedan, Hatchback, SUV, and MPV. Sedans contribute the majority in the Malaysian car service market, followed by Hatchbacks, SUVs, and MPVs.

Based on vehicle brands, Malaysian aftermarket segment is divided into Perodua, Proton, Honda, Toyota, and other brands. Perodua dominates the Malaysian car service market, followed by Proton, Honda, Toyota, and other brands.

Based on vehicle age segments, cars aged 5-10 years dominate the car service market in Malaysia, followed by cars aged 0-5 years and over 10 years. Cars aged 5-10 years are usually post-warranty cars.

In terms of  region-wise, the central region tends to dominate the majority of Malaysia automotive aftermarket market, driven by the large population and the presence of the capital city, Kuala Lumpur.

Challenges Ahead

While Malaysia automotive aftermarket market offers promising opportunities, there are still several challenges that need to be addressed. One of them is the intensifying competition among industry players, both domestic and international. 

In addition, regulatory changes by the government can also impact market dynamics and consumer needs.

Conclusion

With stable economic growth and high vehicle penetration rates, Malaysia automotive aftermarket market continues to show strong growth potential. The number of companies in the Automotive Products market is projected to reach 7.24 thousand, with a combined annual growth rate estimated at 45.94% (CAGR 2024–2028). 

By identifying current market trends and responding to them appropriately, market players can leverage existing opportunities and enhance their market share in this rapidly evolving industry landscape.

 

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