Malaysia 2021. Two Wheeler Market roars towards the All-Time record

Malaysia Motorcycles

Malaysia Motorcycles Market is in great shape scoring a huge +30.8% increase in the first quarter, the best ever, and projecting a new all time record with a sharp increase. Yamaha is market leader ahead of Honda.

Motorcycles Market Trend 2021

The Malaysian motorcycles market in 2020 was the most resilient in the region and in the first quarter 2021 shown a huge increase – while the other regional countries still struggle – well above expectations.

The Malaysian economy is expected to grow between 6% and 7.5% this year, with COVID-19 vaccinations and stronger external demand driving a recovery from the 5.6% contraction for 2020 and the Q1 was projected very fast.

From our point of observation (the two-wheeler market) we have to confirm the prediction. Indeed, in the first quarter sales at 164.569 were up 30.8% from the correspondent period last year and 24.0% from the Q1 2019.

At this level, the quarter was the highest ever and project the entire year at a new all-time record.

Reasons behind the boom are three:

  • Demand for individual mobility
  • High consumer spending due to low interest rate and high liquidity
  • Demand for environmental respectful vehicles, as 2-wheeler are generally considered, and for electric scooters

The market leader was again Yamaha with over 40% of market share, followed by Honda, Kawasaki and Modenas.

In 2020 the Two-Wheeler Market was the best in ASEAN (-8%)

Despite ranking only 5th among the ASEAN region, the Malaysian market is one of the largest worldwide and in the 2020 ranked as 13th.

Following the negative period when, between the 2013 and the 2016, the market lost over 170.000 units, since the 2017 the industry was in a positive mood and 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.

On the wings of the last three years growth, the 2020 started very positively with Jan-Feb sales up 22%, before to be hit by the Covid 19 effects, with sales declining for several months and recovering in the last part of the year.

Full year 2020 sales have been 499.719, down 8.6%, the lower decline among ASEAN region, and the 5th highest level ever achieved.

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.

The other two Japanese – Suzuki and Kawasaki – are immediately behind, while a large group of Indian and Chinese manufacturers are fighting in the market.

Almost all premium brands are represented in the country, with KTM leader in this segment ahead of BMW, Harley Davidson and Triumph.