Malaysia’s motorcycle market rebounded in 2025, with sales rising 3.5% to 613,893 units after a sharp contraction the previous year, supported by stronger-than-expected economic growth (~4.9% GDP). While the electric segment remains small, it showed clear acceleration (+61.6%).
Economic Outlook
Malaysia’s economy likely expanded by 4.9% in 2025, outperforming both government and central bank projections, supported by a strong acceleration in activity during the final quarter and resilient domestic demand.
According to official advance estimates released on January 16, GDP grew 5.7% year on year in Q4, accelerating from 5.2% in Q3 and marking the fastest pace since Q2 2024 (5.9%). This late-year momentum lifted full-year growth above expectations, as the economy had previously been forecast to expand in a 4.0%–4.8% range, down from 5.1% in 2024.
The stronger-than-expected performance reflects solid domestic consumption and improving conditions in key industrial sectors, helping Malaysia navigate a more uncertain regional and global environment.
Motorcycle Industry: Trends and Perspectives
Within this supportive macroeconomic backdrop, Malaysia’s two-wheeler market—the 13th largest globally—showed signs of recovery in 2025. Following a sharp 16% contraction in the previous year, the market rebounded with sales rising 3.5% to 613,893 units.
While overall growth remains moderate, a closer look at the data highlights a notable shift in the electric segment. Although still marginal in absolute terms, electric two-wheeler sales surged by 61.6%, indicating growing consumer interest and the early stages of a structural transition, albeit from a low base.
Market Leaders and Competitive Dynamics
Competitive performance diverged significantly among leading players. Yamaha, the market leader, strengthened its position with sales up 5.5%, while its main rival Honda experienced a sharp decline of 12.7%, reflecting increasing competitive pressure and portfolio challenges.
Among local manufacturers, Modenas ranked third but reported a 14.9% decline, underscoring ongoing difficulties for domestic brands. By contrast, smaller players posted strong growth: SM Sport increased sales by 31.8%, while Aveta recorded an exceptional +125.2%, albeit from a relatively small base.
Overall Assessment
Malaysia’s motorcycle market entered a stabilisation and early recovery phase in 2025, supported by stronger macroeconomic conditions and renewed momentum in the electric segment. However, uneven performance among manufacturers and the still-limited scale of EV adoption suggest that the recovery remains fragile and selective, with further consolidation and competitive reshuffling likely in the coming years.
