Malaysia. Yamaha is leader in a market grown 15% in the 2019

Malaysia Motorcycles

Malaysia Motorcycles Industry in the 2019 was back at the level of 2013 annual record volume, following three years of fast growth. While several brands are on sales, over 65% of the market is concentrated in the hands of Yamaha and Honda. Malaysia ranks as 14th largest market in the World Ranking.

 

Economic Environment

Malaysian economic growth likely lost more steam in the fourth quarter after slowing to the joint lowest reading in three years in the third. The merchandise export slump continued in November, albeit at a softer pace, on declining electronic and petroleum shipments. Meanwhile, the unemployment rate ticked up in November and private credit growth fell to an over one-decade low in October–November, boding poorly for household consumption.

Economic growth should moderate this year. Although exports and fixed investment should rebound, consumer spending will likely slow as persistent weakness in export-oriented sectors weighs on the labor market. The outlook will partly hinge on ongoing U.S.-China trade negotiations: Further progress would be a tailwind for growth whereas a setback could hinder the export recovery.

 

Market Trend

Following the negative period when, between the 2013 and the 2016 the market has lost over 170.000 units in the annual balance, since 2017 the market has recovered, posting three years of growth.

According to data released by the Malaysian Association of Motorcycles Manufacturers, in the 2019 the domestic market was back at the 2013 level with sales at 546.813 units, up 15.9% from the previous year.

Despite ranking only 5th among the ASEAN region, the Malaysian market is one of the largest worldwide and in the 2019 ranked as 14th.

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. 

 

Best selling Brands

The market is dominated by models local made or imported from Thailand/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 2019, Yamaha has sold a record of 209.403 units (+11%) with 36% of market share, while in second place Honda sold 187.000 two-wheelers (+33%). 

In third place a fast growing Kawasaki with 52.000 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.

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