Malaysia Motorcycles Industry kept fast growing and in the first half 2019 has been one of the most dynamic worldwide with sales accelerated by 20%. While several brands are on sales, over 65% of the market is concentrated in the hands of Yamaha and Honda. Malaysia ranks as 13th largest market in the World Ranking.
Malaysian economy appears to have gained some steam in the second quarter. In May, industrial production growth hit a seven-month high, while the manufacturing PMI for Q2 averaged higher than that in Q1, despite remaining in contractionary territory for the ninth straight month in June amid depressed factory activity across most parts of Asia. Moreover, tepid inflationary pressures, strong private sector credit growth in April-May, and the bank’s decision to cut rates in late May likely fueled domestic demand.
Growth is expected to ebb slightly this year due to weaker public and household spending growth. In addition, the external sector is seen tapering, mainly the result of softer global demand for tech and trade tensions, which could spill over into the domestic sector. A prolonged U.S.-China trade spat and a faster-than-expected deceleration in China pose key downside risks.
According to data released by the Malaysian Association of Motorcycles Manufacturers, in the 2018 the domestic market scored the third increase in a row with total two-wheeler sales at 471.782 units, up a robust 8.5% from the previous year.
Following the sharp crisis which hit the market in the 2013-2015, when sales fell down 31% in two years, since the 2016 the market dynamics are positive and the industry is recovering the lost terrain.
Despite ranking only 5th among the ASEAN region, the Malaysian market is one of the largest worldwide and in the 2018 ranked as 13th, up 1 spot from the previous year, overtaking the United States and is not far from Colombia.
Next 5 years perspectives are positive, considering the use of scooters/street motorcycles as primary private and commercial mobility vehicles and the growth of the premium segment, strictly related with the growth of middle class revenue and the love for motorcycles, constantly growth in the country in the last decades.
Indeed figures for the first six months of the 2019 confirm this projection with total motorcycles industry again growing. Sales has been reported at 257.480, up 20%, one of the best year-on-year score among the Top 25 countries and the best in the ASEAN region.
Best selling Brands
The market is dominated by local made model or imported from Thailand or Indonesia. However, the arrival of several imported brands is relevant and the market is quite dynamic.
In any case, over 60% of the market is in the hands of the two biggest Japanese companies, with the peculiarity that the market leader is Yamaha, not Honda.
In fact, in the first half 2019, Yamaha has sold 92.693 units (+8.3%) with 36% of market share, while in second place Honda sold 79.800 two-wheelers (+24%).
In third place a fast growing Kawasaki with 30.660 sales ahead of the local brand Demak, which seems to have financial troubles, Suzuki and a recently landed, Bajaj Auto, already well positioned.
Almost all premium brands are represented in the country, with KTM leader in this segment ahead of BMW, Harley Davidson and Triumph.