What is the structure of the automotive industry?

The structure of Malaysia's automotive industry is characterized by a balance of diversification and localization, forming a complete industrial chain consisting of vehicle manufacturing, parts production, sales, and after-sales services. Local brands Proton and Perodua dominate the market, with their combined market share exceeding 60% in 2025. Japanese brands such as Toyota and Honda hold about 30% of the market through local assembly. Chinese brands like BYD and Chery are accelerating their penetration with new energy vehicles and localized production-for example, BYD SEAL became the best-selling pure electric sedan in 2024, and Leapmotor C10 achieved localized production of cost-effective pure electric SUVs via the CKD model, priced at approximately 139,000 ringgit. The parts industry is concentrated in states like Selangor and Perak, forming clusters that emphasize both export orientation and vehicle supply. Chinese supply chain enterprises such as EVE Energy and Songyuan Co., Ltd. have established production facilities for batteries and safety components. The government promotes electrification through the *National Automotive Policy*, targeting a 15% share of electric vehicles by 2030 and providing tax exemptions and infrastructure subsidies to drive the industry's green transformation. Overall, Malaysia's automotive industry is based on domestic demand, integrates transnational cooperation and technology input, and is gradually forming an ecosystem covering traditional and new energy vehicles, with coordinated development of local and international brands.