Carmakers Go All Out with Year-End Offers Before EV Tax Ends

The year-end car sale season is off to a fiery start, with major automakers rolling out big discounts to attract buyers and keep their market positions strong.

According to Berita Harian, TA Securities analyst Angeline Chin said Honda is offering rebates of up to RM17,000 on selected petrol models and as much as RM34,000 on its e:N1 EV.

“We expect price competition to heat up in the fourth quarter as brands chase market share over profits

"October’s sales volume will likely beat September’s, helped by year-end promotions and a rush to buy EVs before the CBU tax exemption ends," she said. 

Vehicle sales in September dipped sharply, down 21.5% month-on-month to around 58,500 units following shorter workweeks, plant shutdowns, and buyers holding back ahead of Budget 2026.

TA Research maintained its 2025 total industry volume (TIV) forecast at 750,000 units, signalling a cautious outlook. 

RHB Research, however, raised its forecast slightly to 795,000 units, while CIMB Research estimates 790,000 units.

"Attention is shifting toward local EV assembly, with demand expected to spike before tax breaks expire in January 2026. Still, car prices could rise by 15% to 30% once incentives end," the research house noted.

Analysts warn that ongoing price cuts may squeeze profit margins, with TA Research keeping its underweight view on the sector and sell calls on Bermaz Auto, MBM Resources, and Sime Darby.

Even so, Sime Darby remains a top pick for some, supported by a recovering mining business in Australia, a strong EV lineup, and its stake in Perodua.

Analysts say a stronger ringgit, lower interest rates, and supportive government policies could provide a much-needed boost to Malaysia’s auto market in the months ahead.