What to Know About the Automotive Aftermarket Industry in Malaysia

When purchasing a car, a buyer is likely to expect the best products and services associated with the car. This is when the aftermarket comes in as it is concerned with a wide number of activities such as parts replacement, repairs, and maintenance. With an aftermarket in place, automobiles can be used for a longer time which ensures convenience and saftey for the customers as well.

Aftersales services are increasingly in demand as people recognize their value. The automobile aftermarket industry continues to develop in marked progression across the globe. GMI Research predicts the industry is poised for significant growth in the automotive aftermarket industry, continuing their rapid development. Development is driven by the increasing demand for vehicle upgrades as well as customer concerns for their safety and comfort . The increasing sophistication and number of autonomous vehicles is also expected to drive demand for automotive aftermarket services.

As per GMI Research, the Malaysia Automotive Aftermarket Market is predicted to expand at a remarkable CAGR during the forecast period from 2025-2032

What Drives the Industry?

This market has benefited from many factors.

• Modern vehicles

A lot of people consider modern vehicles to be equipped with advanced technologies and the most sophisticated automobile components. The level of technology in modern vehicles is so advanced that many vehicle maintainers and users find it hard to keep up with the knowledge and skills needed to perform the most basic repairs. This is the main reason why the need for modern after sales services is increasing.

Despite the growing sophistication of modern vehicles, the engineering and manufacturing advancements of today have significantly extended the serviceable life of vehicles. Regularly needed maintenance and repairs of older vehicles are considered to be after sales services that many users need.

• Shifts in consumer preferences

These preferences are shaped by a myriad of factors such as changes in personal lifestyles, changing economies, shifts in social perspectives regarding sustainability, and advancements in technology. This market is beginning to develop as prospective buyers are looking for options in transport that are both customized as well as eco-friendly.

Prospects for EVs are growing fast and so is the need for charging stations and other support devices. In the same manner, as demand for personalization grows, so too is the market for components such as connected car technology systems and aesthetic modifications. Moreover, as cars become more sophisticated, there is a growing demand for aftermarket services that provide enhanced connectivity, safety, and overall user convenience. These changes are providing impetus for aftermarket systems which offer advanced navigation aids and collision avoidance systems.

The difficulties

The market is growing at a very hectic pace but there are also some considerable difficulties which can slow down the development of the market.

• Scarcity of workforce and relevance of expertise

The evolving technology and the shift towards electric vehicles (EVs) and enhanced sustainability are offering unprecedented growth opportunities. However, the industry has started to feel the impact of reliance on aging workers and the reluctance of the younger populace to join the workforce. This skills gap presents an opportunity for industry-wide collaboration to close. Up-skilled automation, reformed training and educational programs, and promotion of industry advancements can close the gap.

• Growth of electric vehicles market

EVs are arguably less mechanically complex than horizontally opposed combustion internal engine vehicles. However, the enhancement of supply chains and OEMs market domination for electric vehicles parts and components has made them particularly attractive to aftermarket firms. This is because the aftermarket industry for internal combustion vehicles (ICVs) is almost mature. However, aftermarket firms are still grappling with the unregulated and sparsely populated EVs aftermarket space, which is teeming with competition from established ICVs. This creates a great opportunity for aftermarket firms to focus and expand on EVs.

The Road Ahead

The rewards struggling firms should consider first are the opportunities in the market.

• Capture the chances provided by electrification Reflecting on the gradually increasing number of vehicles on the road, the demand for aftermarket EV parts will continue to increase. This category includes EV accessories, batteries, and charging systems. As EV adoption increases, there will also be greater demand for infrastructure to support charging. The aftermarket segment can seize the opportunity by putting advanced charging facilities in public, private, and business areas.

• The model of the economy of subscription services and consumption that is useable for the aftermarket offers predictable income to businesses on a regular basis. This model also enables better financial planning. Aftermarket companies reinforce customer loyalty and develop business value by implementing subscription services.