Steering Disruption: The Great Shake-Up in Malaysia’s Automotive Future

1. The Road Ahead Has Changed — Forever

The automotive industry in Malaysia and across Southeast Asia is no longer idling in neutral. It’s shifting gears — fast.

Once dominated by traditional giants and familiar badges, the landscape is now being redrawn by digital platforms, aggressive Chinese entrants, and the unstoppable rise of electric mobility.

Names like Carsome, Carro (formerly MyTukar), and iMotorbike started by solving small problems — giving consumers a fair price for used vehicles. But as their data, customer trust, and ecosystem grew, they quietly became power players. Today, they’re not just resellers. They’re transforming into full-stack automotive ecosystems — from inspection to financing, insurance, new-car distribution, and even after-sales services.

This is the same playbook that disrupted taxis (Grab), hotels (Airbnb), and retail (Shopee). And it’s coming for the traditional automotive model next.

2. From Used-Car Lot to Mobility Empire

Carsome and Carro’s rise represents more than clever marketing — it’s the start of a digital renaissance.

They know what traditional players never fully understood: Data + Trust = Power.

By controlling inspection data, resale values, buyer behavior, and financing, they now understand Malaysia’s car market better than many distributors themselves.

Their next logical move? Enter distribution — directly.

Carsome has already ventured into new-car tie-ups and premium used segments, eyeing EV partnerships.

Carro, backed by Singaporean capital and now owning MyTukar, is expanding into both 2-wheel and 4-wheel distribution, eyeing fleet electrification.

iMotorbike is doing the same in the motorcycle segment, connecting workshops, dealers, and owners digitally — a space once guarded by legacy importers.

Each step erodes the moat built by old-school distributors who relied on exclusivity, long-term franchise agreements, and tightly controlled territories.

3. The Chinese Wave — A Once-in-a-Generation Disruption

If Carsome and Carro are the digital wave, the Chinese EV invasion is the tsunami.

Brands like BYD, Chery, Ora (Great Wall Motor), Neta, and Geely-backed Proton have rewritten what “value for money” means.

These are not the low-cost imitators of old. They offer advanced driver-assistance systems (ADAS), massive infotainment screens, AI-powered energy management, and build quality rivaling Japanese and European counterparts — often at 20–30 % lower prices.

Even Japan’s long-time stalwarts — Honda, Toyota, Nissan, Yamaha, Kawasaki and Taiwan Kymco & SYM — are feeling the heat. For decades, they defined reliability and resale value. Now they risk being seen as old tech.

Why? Because consumers no longer judge cars by torque or engine size. They judge by connectivity, design, range, and tech integration — exactly where Chinese brands excel.

Across ASEAN, China’s influence grows daily: 1. BYD leads in EV sales in Thailand, with more than 40 % of total EV market share in 2024. 2. Chery and Great Wall Motor have committed to CKD plants in Malaysia and Indonesia. 3. Proton-Geely collaboration has made Proton a regional player again, blending local brand strength with global technology.

For the first time in decades, Malaysia’s automotive map is not drawn in Tokyo or Munich — it’s being rewritten in Shenzhen and Hangzhou.

4. The Powertrain Crossroads: ICE vs Hybrid vs EV vs Hydrogen

We are living through the biggest technological transition since the internal-combustion engine was invented.

Malaysia is entering a hybrid age. Full EV adoption is still constrained by charging infrastructure, cost, and consumer hesitation. That’s why hybrids and plug-in hybrids (PHEVs) are booming — a halfway house between past and future.

But make no mistake: the electric era is inevitable. The Ministry of Investment, Trade and Industry (MITI) aims for EVs to form 15 % of total industry volume by 2030, while zero-emission vehicles dominate new registrations by 2040. Battery costs are falling, range is rising, and every policy points toward electrification.

Hydrogen will likely stay niche — useful for commercial fleets, buses, and trucks where refuelling speed matters, but economically unviable for passenger cars in the near term.

The key for manufacturers? Flexibility.

5. After-Sales: The Quiet Revolution Under the Bonnet

If sales disruption is visible, the after-sales disruption is silent but seismic.

Traditional workshops thrived on consumables: oil, filters, spark plugs, gearboxes, timing belts. An EV needs almost none of those. No engine oil. No spark plugs. Fewer moving parts. Fewer breakdowns.

Routine servicing frequency drops by up to 60 % compared to ICE vehicles.

This destroys the long-term profit engine of dealers and service centers. So where will the new money come from? 1. Software & Diagnostics — scanning systems, firmware updates, software calibration. 2. Battery Health Services — predictive analytics, thermal management, replacement programs. 3. Connectivity Add-Ons — subscriptions for entertainment, autonomous driving, and performance tuning. 4. Customisation & Experience — detailing, lifestyle accessories, interior refurbishments, EV-friendly tyre and brake systems.

Meanwhile, independent workshops face an existential threat: proprietary repair systems, locked software, and “right-to-repair” restrictions. Without OEM-approved diagnostic tools, many may vanish.

The future technician isn’t a grease-covered mechanic. He’s a software-aware, high-voltage-trained engineer. Future-proof platforms that can switch between ICE, hybrid, and EV architectures will survive. Those locked into single formats will not.

6. The Spare-Parts Supply Chain Will Never Be the Same

The parts game — long dominated by established distributors — will fragment.

EVs require new materials: lithium, nickel, cobalt, silicon carbide, rare earth magnets. Supply chains must adapt. Expect the rise of battery recycling, remanufacturing hubs, and local assembly of EV modules.

As Malaysia opens up its free-trade zones and industrial parks, new entrants from China, Korea, and Europe will localize to avoid tariffs and qualify for incentives.

This creates a second layer of opportunity — for logistics players, port operators, and parts aggregators.

Whoever controls the battery-to-recycling loop will control the real goldmine of the next decade.

7. The Battle for Charging Infrastructure

No EV revolution succeeds without sockets.

The race to build Malaysia’s charging backbone is now fierce: 1. Gentari (Petronas), TNB, JomCharge, and Tesla are installing thousands of charging points. 2. Property developers are adding chargers into malls, office towers, and condominiums. 3. Start-ups are offering subscription-based charging and roaming plans.

The challenge? Interoperability and speed.

Malaysia must avoid the “charger chaos” seen in early-stage markets — multiple connectors, different payment systems, no roaming between operators.

Smart charging, grid balancing, and vehicle-to-grid (V2G) integration will soon become buzzwords, not dreams. Real estate players, too, are discovering that an EV-ready building is a higher-value asset.

Questions Every Industry Player Must Ask

For Manufacturers / Distributors

1. Are your platforms modular enough for EV, hybrid, and ICE variants? 2. How will you monetize software and data? 3. Are your service networks equipped for high-voltage and digital diagnostics? 4. Are you ready to go direct-to-consumer — or will someone else take your customers first? 5. Can you form alliances with tech or energy companies to future-proof your ecosystem?

For Dealers / Workshops

1. What portion of your income depends on oil changes and consumables? 2. Do your staff understand EV safety and diagnostics? 3. Can your business pivot into charging, accessories, or fleet servicing? 4. Should you partner with digital platforms or compete head-on?

For Policymakers

1. How do we ensure fair access to diagnostic tools (Right-to-Repair)? 2. Are EV incentives and infrastructure expanding fast enough? 3. Can we localize battery production and recycling to create high-value jobs? 4. How do we protect consumers in the age of software-locked vehicles?

The Next 10 Years — The New Automotive Decade

By 2035, the “old guards” who fail to evolve will vanish — not because they lack skill, but because they refused to unlearn.

The dealerships that still think customer service is coffee and a waiting room will lose to those offering real-time service tracking and OTA updates.

The manufacturers that cling to ICE margins will be out-priced by Chinese or digital competitors. And the regulators who move too slowly will see local industry hollowed out.

But there’s also hope. Malaysia sits in the perfect intersection — strong local talent, industrial base, location, and a rising consumer market.

If we combine policy clarity, skills retraining, and corporate courage, we can lead ASEAN’s automotive transformation, not trail it.

European Brands Revived or Owned by Chinese Giants (2022–2025) Over the last decade, and especially between 2022 and 2025, several historic European car brands have been revived, owned, or licensed by Chinese automotive giants. Some iconic names are now set for a second life — not under British, German, or French management, but Chinese innovation and funding.

MG Motor (UK) — Owned by SAIC Motor (China) The most successful rebirth story. MG, originally Morris Garages of the UK, is now 100% owned by SAIC Motor. Under Chinese leadership, MG is no longer just a nostalgic badge: it has evolved into a serious EV competitor, with models like the MG4, MG5 Estate, and MG Marvel R widely sold across Europe.

Volvo Cars (Sweden) — Owned by Geely (China) Geely’s 2010 acquisition of Volvo remains one of the most successful East-West automotive collaborations. Volvo transitioned strongly into electrification and safety leadership, under Geely’s hands-off, investment-focused ownership.

Polestar (Sweden) — Volvo-Geely Joint Venture Created from Volvo’s racing division, Polestar now operates as a premium all-electric global brand. It’s heavily reliant on Chinese-funded R&D, Chinese-based platform sharing, and Chinese scale, even while emphasizing Scandinavian design and branding.

Lotus Cars (UK) — Majority Owned by Geely (China) Lotus is undergoing the most radical transformation of its 75-year history. Under Geely’s majority ownership, Lotus is launching its first-ever SUV (Lotus Eletre) and its first hyper-EV (Lotus Evija), built on new platforms developed partly in China.

Borgward (Germany) — Revived by Foton Motor (China), Later Collapsed Borgward was briefly revived with Chinese funding and ambition, targeting Europe and Southeast Asia, but ultimately failed to scale and went bankrupt by 2022.

Emerging Developments: More British Brands Coming Back? Austin, Morris, and Rover (UK): SAIC Motor, which owns MG, also holds the rights to dormant historic British names like Austin, Morris, and Rover.

Recent internal discussions (2024 reports) suggest SAIC is considering reviving one or more of these brands, either for special edition EVs or for lower-cost urban mobility vehicles targeted at Europe.

While no production has officially started yet, the registration renewals and trademark protections around these brands hint strongly at future moves.

Example: “Austin” could be revived as an affordable city EV sub-brand under MG’s European division to compete with ultra-low-cost Chinese and European city cars.

Rover: Technically the Rover name is partially tangled with Jaguar Land Rover (owned by India’s Tata Motors), but some aspects of the Rover passenger car branding are still tied up with historical licenses that SAIC holds.

A New Automotive Era, Driven by Data In 2023, the European automotive market witnessed a significant rebound, with approximately 12.85 million new passenger vehicles registered across the EU, UK, and EFTA countries — a 13.7% increase from the previous year . Chinese automakers, including brands like BYD, MG (owned by SAIC), and NIO, made notable inroads, capturing an estimated 2% of the market, equating to around 257,000 vehicles.

Moving into 2024, the market experienced modest growth, with new car registrations rising by 0.9% to approximately 12.96 million units . Chinese manufacturers expanded their footprint, increasing their market share to an estimated 3%, translating to roughly 389,000 vehicles sold. This growth underscores the increasing acceptance and competitiveness of Chinese brands in the European market.

The automotive world from 2024 cannot be viewed through the lens of the past.

In contrast, European manufacturers such as Volkswagen Group, Stellantis, Renault, BMW, and Mercedes-Benz maintained a dominant position, collectively accounting for about 60–65% of the market in both years, which corresponds to approximately 7.8 to 8.4 million vehicles annually.

Chinese automakers are no longer struggling startups; they are technologically advanced, globally competitive, and highly adaptive forces in the industry.

European brands are not failures — but they are at a strategic crossroads. Some, like BMW and Mercedes, are cautiously adapting and succeeding. Others, like VW, Stellantis, show signs of stagnation and uncertainty.

Ultimately, engineering excellence today must be measured not just by tradition but by innovation, affordability, and consumer relevance.

And when judged by these modern standards, Chinese automakers in 2024 have earned their place at the top table — not by perception, but by performance.

Final Reflection — Adapt or Be Left Behind

We’ve seen this movie before. Nokia laughed at Apple. Kodak ignored digital. Blockbuster mocked Netflix.

In every case, those who clung to their old business models became history. The same crossroads is here — just louder, faster, and electric.

Those who adapt will drive the future. Those who don’t… will become case studies.

And in this new age of mobility, one truth stands tall: Innovation waits for no one. Either we evolve — or we get overtaken on our own highway.

by Amarjeet Singh @ AJ Marketing & Mobility Strategist | Former Automotive Industry Head | Founder, Coaching4Champions