REMEMBER your very first car? We all have vivid memories of our very first taste of mobility and freedom, whether it was a compact hatchback or a trusty sedan.
Each car purchase came with so much thought and consideration: “Will it suit my changing lifestyle?”, “Can I afford the running costs?”, and “Will it bring me joy and happiness?”
Just as we have grown and moved on personally, the answers to these questions have changed over the years.
What Malaysians drive, and how we choose our cars, have evolved in fascinating ways.
After all, we Malaysians really do love our cars. Did you know, buying a car is one of the top priorities for fresh graduates.
As a nation, there are 533 cars for every 1,000 people. In other words, one car for every two people.
We are second only to Brunei, and rank above South Korea, Taiwan and Thailand.
To what length will we go to have our own car?
Owning a car isn’t just about the sticker price, but what comes after, for many years to come.
Assuming, like most Malaysians, you buy your car on financing, that puts an additional cost of 2% to 3% interest over up to nine years of your monthly instalments.
Then you factor in the cost of fuel, servicing and maintenance, wear and tear items, road tax and insurance.
And don’t forget the depreciation costs. Car ownership is not by any means cheap, but that is the cost of freedom of mobility.
And yet, the cost of such mobility has risen only marginally over the last 10 years, compared to other expenses like food, healthcare and entertainment.
Can you believe that healthcare has risen by almost 20 times more than mobility over that period?
With rising costs of living everywhere, affordability in the automotive market is where people find some respite.
This is why Perodua dominates the market, with a 44% share overall.
One in two Proton cars sold are the budget Saga model.
Whether seen as an entry into motoring, or simply an enabler of a more frugal lifestyle, the A- and B-segment cars are the go-to choice for many Malaysians.
But what happens when affordability collides with shifting lifestyles?
For your daily commute, there’s the car. For everything else, there’s the SUV
If I were to best describe what a sport utility vehicle (SUV) means most to the average buyer, it would be the imagination, empowerment and freedom it brings to their daily grind.
The notion of being able to adventurously climb mountains and cross rivers does sound exciting, even if your daily reality is nothing more than waddling through hours of traffic jams on the school run.
Today’s SUV is quite a formidable achievement. Well-built and designed, to offer everything a sedan can, and much more.
They are spacious, versatile, safe and even economical, in some cases. They offer drivers excellent visibility and control, giving them a sense of confidence and empowerment.
This must resonate with most Malaysians, because in 2023, SUVs made up nearly 30% of total car sales in Malaysia.
Take out the budget national-make bestsellers in the A and B-segments, and that number jumps to a staggering 46%. It’s clear that for many buyers, the appeal of an SUV outweighs the pragmatism of a sedan.
Borneo: Where bigger is better
Nowhere is the love for SUVs and pickups more evident than in Sabah and Sarawak. The tough, rugged terrain places greater demand on cars, and people need vehicles that can deliver.
If you have travelled across Borneo, you will immediately notice how different the automotive landscape is.
Where compact cars dominate the scene in the Klang Valley, Sabah and Sarawak tell a different story. Here, the Toyota Hilux, Isuzu D-Max and Mitsubishi Triton are kings of the road.
Is the sedan losing its premium appeal?
Not too long ago, owning a Toyota Camry or Honda Accord was a sign that you had found success in life. These cars were once the go-to aspirational models for professionals and business owners.
But how times have changed.
With the SUV trend showing no sign of a slowdown, combined with a narrowing price gap to entry-level luxury brands, the mainstream D-segment sedan is a fading breed.
Models like the Honda Accord and Volkswagen Passat have disappeared from the Malaysian market, leaving the Toyota Camry as the lone soldier in this segment.
Many buyers from this segment have also taken the leap towards luxury brands, with alternatives like the BMW 3 Series and Mercedes-Benz C-Class being the next logical choice for mainstream buyers.
So, contrary to the sedan losing its premium appeal, it just became the member of a more exclusive club.
Aspirational automobiles
Owning a luxury car at least once in their lifetime is something many Malaysians aspire to. Remember the costs of ownership I spoke about earlier?
Here’s the harsh reality of luxury motoring: everything costs more. Parts and servicing, depreciation, insurance, and often the cost of fuel and road tax, if the car has a big engine.
But where there’s a will, there is a way. This is why the pre-owned luxury car market has grown so much in recent years.
As an example, for the price of a brand-new Honda, you could drive home in a well-maintained, pre-loved Mercedes.
That’s an option many buyers are now considering, balancing the desire for prestige with financial practicality.
Looking ahead
The way Malaysians buy cars will continue to evolve. Budget-conscious buyers will always seek value, while aspirational buyers will find new ways to achieve their dream lifestyle.
One thing remains certain: as lifestyles change, so too will the cars we choose to drive.
Whether it’s affordability, practicality, or aspiration, the Malaysian automotive landscape is always shifting gears – and the road ahead promises to be just as exciting.
The views expressed here are the writer’s own.
