Malaysia Two-Wheeler Market By Vehicle Type (Motorcycle, Scooter/Moped), By Propulsion (ICE, EV), By End Use (Personal, Commercial), By Region, By Competition, Opportunities & Forecast, 2020-2030F

Market Overview:

Malaysia Two-Wheeler Market was valued at USD 736.31 Million in 2024 and is expected to reach USD 905.11 Million by 2030 with a CAGR of 3.50% during the forecast period. The Malaysia two-wheeler market is evolving as consumers increasingly prefer affordable, efficient, and compact mobility solutions. Rising urban population, high vehicle density, and traffic congestion are leading many to choose two-wheelers over cars for daily commuting.

According to the Road Transport Department (JPJ Malaysia), as of end-2023, there were over 13.6 million registered two-wheelers in Malaysia. According to the Malaysian Automotive Association (MAA), In 2023, over 580,000 new two-wheelers were sold, a 2.5% increase from 2022.

These vehicles are more maneuverable, consume less fuel, and cost less to maintain, making them ideal for city travel. Government initiatives to promote efficient transportation options and support for green mobility are contributing to the sector’s expansion. Demand is also rising in semi-urban areas where two-wheelers offer a practical solution for both personal and commercial use.

Consumer preferences are shifting toward smart, connected, and lightweight vehicles, supported by improved design, digital instrument clusters, and better engine performance. Electric two-wheelers are emerging as a viable alternative, especially in cities with better charging infrastructure. Young consumers are increasingly drawn to stylish and tech-savvy models that combine performance and aesthetics. Leasing and subscription models are also gaining ground as consumers seek more flexible ownership options. Two-wheelers are no longer limited to budget-conscious segments but are finding appeal across lifestyle, sport, and delivery use cases.

Challenges persist in the form of traffic safety, regulatory limitations, and price sensitivity. Maintenance infrastructure in some areas remains underdeveloped, affecting ownership satisfaction. Environmental concerns are pushing for more sustainable propulsion systems, but battery technology limitations and inconsistent infrastructure create hurdles for widespread EV adoption. Market players must address these structural and technological challenges to maintain growth momentum and meet the evolving demands of Malaysia’s diverse and digitally connected consumer base.

Market Drivers

Growing Urbanization and Traffic Congestion

Rapid urban growth in Malaysian cities has increased daily commuting challenges, with severe congestion on roads being a major issue. According to the Institute of Road Safety Research (MIROS, 2023), more than 60% of motorcycle users in Malaysia use them for daily commuting, especially in urban and semi-urban areas. Two-wheelers offer a practical and efficient solution for navigating through heavy traffic. They reduce travel time, fuel usage, and parking difficulties, making them an attractive option for urban dwellers. Rising middle-class populations in metropolitan areas further drive demand for affordable personal mobility. The increasing use of motorcycles for ride-hailing and courier services in urban areas also supports market expansion. As cities expand vertically and horizontally, the demand for agile transportation options that can move quickly through dense traffic will continue to grow. Consumers in both residential and commercial zones favor two-wheelers for short- to mid-range travel. This trend contributes to a steady and sustained increase in sales of both motorcycles and scooters, reinforcing their importance in Malaysia’s broader urban mobility ecosystem.

Rising Disposable Incomes and Lifestyle Shifts

As Malaysia's economy continues to grow, consumer purchasing power is improving, particularly among the younger population. Increased disposable income allows individuals to consider premium and performance-focused two-wheelers, often equipped with smart features and modern designs. According to the World Bank (2023), Malaysia has one of the highest motorcycle ownership rates per capita in Southeast Asia, with over 410 motorcycles per 1,000 people. The perception of motorcycles has evolved beyond utilitarian use to lifestyle choices, with younger consumers embracing bikes for recreation, convenience, and social identity. Financial products such as low-interest loans, installment options, and attractive exchange programs make these purchases more accessible. The rising popularity of motorsport events and biking clubs adds aspirational value to two-wheeler ownership. This lifestyle evolution is leading to growing demand for a variety of two-wheelers, from budget scooters to sport and touring models. Consumers now place more importance on vehicle aesthetics, performance, and brand experience. These factors are helping to diversify market demand and sustain long-term growth across multiple two-wheeler categories in the country.

Government Support for Electrification

Malaysia’s government is actively encouraging the adoption of electric vehicles, including two-wheelers, through a mix of policy incentives, subsidies, and infrastructure development. Exemptions on import duties, tax benefits, and incentives for local EV manufacturing are designed to make electric two-wheelers more affordable and accessible to consumers. According to the Ministry of Investment, Trade and Industry (MITI), Malaysia’s National Automotive Policy 2020 (NAP 2020) aims to promote the adoption of EV two-wheelers, with a target of 15% electrification in the two-wheeler segment by 2030.

·     According to Transport Minister Anthony Loke (Jan 2024 Statement), the government announced incentives including RM2,400 subsidies for electric two-wheelers, with the aim to increase electric motorcycle registrations from 2,000 in 2023 to 100,000 by 2025.

The push for sustainable transportation aligns with Malaysia’s green mobility goals and long-term carbon reduction targets. Public-private partnerships are also facilitating the rollout of EV charging stations in key locations. As awareness about environmental issues grows, consumers are gradually shifting towards electric options, especially for short-range urban travel. These initiatives are not only boosting demand for EVs but also encouraging innovation among manufacturers. Research and development funding, along with pilot programs, is helping to accelerate product development. As policy frameworks become more robust, the impact of government efforts will be instrumental in shaping the trajectory of the electric two-wheeler segment in the country.

Affordability and Low Maintenance Costs

Two-wheelers are more economical than cars in terms of purchase price, fuel consumption, insurance premiums, and maintenance costs. This affordability factor makes motorcycles and scooters highly attractive to Malaysia’s middle- and lower-income population. In both urban and rural areas, individuals and small businesses depend on two-wheelers as cost-effective transportation for commuting and operations. High fuel efficiency and relatively lower wear and tear compared to four-wheelers further enhance their value proposition. Maintenance networks are widespread, offering low-cost services and parts availability even in less-developed regions. This accessibility reinforces customer confidence in two-wheeler ownership.

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Key Market Challenges

Limited Charging Infrastructure for EVs

Despite growing interest in electric two-wheelers, Malaysia faces significant limitations in EV charging infrastructure. Most charging facilities are concentrated in select urban zones, leaving large parts of the country under-equipped. This discourages potential buyers who are concerned about charging accessibility during daily use. Home charging remains a challenge for residents in high-rise apartments or shared housing. Limited interoperability between charging stations, lack of fast-charging options, and insufficient government-mandated charging standards further compound the issue. The current pace of infrastructure development does not match the rising number of electric vehicles entering the market. Private sector participation in setting up charging networks is growing, but without unified regulations and incentives, progress remains slow. Until charging becomes more widespread, consumers may hesitate to fully transition to electric two-wheelers. This infrastructure gap poses a major hurdle to achieving mass electrification goals and limits the full potential of the EV segment.

Rising Cost of Raw Materials

The two-wheeler manufacturing industry is vulnerable to fluctuations in raw material prices, including steel, aluminum, rubber, and plastic. The global supply chain disruptions and demand surges often lead to increased production costs. These cost pressures are passed on to consumers, making vehicles more expensive and reducing affordability—especially in price-sensitive segments. Currency fluctuations and import dependency on certain components further intensify cost instability. Manufacturers are faced with difficult choices: either absorb the costs, thereby shrinking profit margins, or raise prices, which can reduce sales volumes. The challenge becomes more pronounced when trying to introduce advanced features or comply with new environmental regulations, which require costly R&D and upgraded materials. The balance between pricing, features, and profitability is a tightrope for OEMs. Persistent cost increases can delay model rollouts, reduce competitiveness, and limit innovation all of which are critical to sustaining long-term market growth.

Competition from Public and Shared Mobility

As cities improve their public transportation infrastructure, including buses, metro systems, and app-based ride-sharing, the demand for personal two-wheelers faces indirect competition. Younger urban populations are increasingly adopting shared mobility options for convenience and lower environmental impact. The rise of affordable ride-hailing and scooter rental platforms means consumers can access two-wheelers without the financial burden of ownership. With smart mobility gaining popularity, long-term ownership models are slowly being replaced by usage-based preferences. This trend is amplified in cities with dense populations and limited parking space, where public transport is subsidized and integrated. Government efforts to improve sustainable transport systems may shift attention away from two-wheeler promotion. Unless the industry adapts by aligning products with changing urban mobility preferences, it risks losing relevance among a segment of modern consumers. This trend challenges manufacturers to rethink distribution, pricing, and user experience strategies in the evolving mobility ecosystem.

Key Market Trends

Growing Popularity of Electric Two-Wheelers

Electric two-wheelers are steadily gaining popularity in Malaysia due to rising fuel prices, environmental concerns, and growing government support for electrification. Consumers are increasingly exploring battery-powered scooters and motorcycles for short-distance travel in urban areas. Improvements in battery technology, such as enhanced range and faster charging, are addressing initial consumer concerns. Manufacturers are introducing a wide range of electric models across various price points and styles to attract both daily commuters and tech-savvy youth. The integration of digital dashboards, GPS, and app connectivity adds value and appeal to modern buyers. Pilot programs by municipal authorities and ride-sharing companies are further familiarizing the public with electric mobility. While infrastructure challenges persist, the early momentum and positive sentiment are strong indicators of long-term growth. As awareness and accessibility improve, electric two-wheelers are expected to transition from being a novelty to a mainstream mobility solution in the country.

Integration of Smart Technologies

The increasing adoption of smart features is reshaping consumer expectations in the two-wheeler segment. New models now come equipped with Bluetooth connectivity, digital instrument clusters, GPS navigation, and app-based vehicle diagnostics. These innovations improve convenience, safety, and the overall riding experience. Young riders in particular are drawn to two-wheelers that offer connected technologies and smartphone compatibility. These features are no longer limited to premium models; even entry-level scooters and motorcycles are incorporating smart upgrades. Anti-theft systems, emergency alert services, and ride analytics are also becoming standard. As 5G and IoT ecosystems expand in Malaysia, two-wheeler OEMs are focusing on digital innovation to stay competitive. The rise in tech-savvy consumers and increasing smartphone penetration fuels this shift toward connected mobility. Smart technology is not just a value addition but an emerging requirement in an evolving market where digital convenience and user control are top priorities for buyers.

Expansion of Subscription and Leasing Models

New ownership models such as leasing, subscription, and rent-to-own are gaining traction in Malaysia, particularly in urban centers. These flexible options allow consumers to access two-wheelers without the need for heavy upfront investment or long-term commitments. Monthly plans often include maintenance, insurance, and roadside assistance, making them attractive to gig workers, students, and short-term users. The rise of e-commerce and delivery services has also boosted demand for commercial leasing of two-wheelers. Businesses are turning to fleet subscriptions to manage costs and ensure consistent vehicle availability. These models help mitigate depreciation concerns and reduce financial risk for users. As economic uncertainties affect consumer spending patterns, such alternatives offer convenience and adaptability. Digital platforms and fintech companies are playing a vital role in making these services more accessible through app-based booking and payment solutions. Subscription models are expected to grow further as lifestyle and mobility preferences continue to evolve.

Emphasis on Lightweight and Compact Design

Design innovation in Malaysia’s two-wheeler market is focusing on lighter, more compact models that offer agility and ease of use in urban environments. Riders prefer nimble vehicles that can navigate through traffic and fit into tight parking spots. This trend is shaping product development across both scooters and motorcycles, with an emphasis on ergonomics, fuel efficiency, and rider comfort. Compact designs also appeal to first-time buyers and students who value practicality over power. For electric vehicles, lighter weight contributes to better range and easier handling, making compact EVs especially desirable. Manufacturers are investing in material innovation, such as aluminum frames and composite body parts, to reduce weight without compromising strength. Sleek aesthetics and minimalistic design language are becoming common in both performance and commuter segments. As cities continue to densify, consumer demand for compact, maneuverable, and stylish two-wheelers is expected to influence the majority of future product launches.

Segmental Insights

Propulsion Insights

The Malaysia two-wheeler market includes both internal combustion engine (ICE) and electric vehicle (EV) models, each serving distinct consumer needs. ICE-powered two-wheelers continue to maintain a strong presence due to their established infrastructure, high fuel efficiency, and widespread availability of service centers and spare parts. Consumers appreciate the performance range and reliability of petrol-powered vehicles, which are suited for long distances, heavy loads, and remote travel. ICE two-wheelers are commonly used in both personal and commercial applications, offering a broader selection in terms of engine capacity, design, and price segments. Manufacturers continue to enhance ICE models with features like improved mileage, emission control systems, and smart fuel injection technologies to meet evolving environmental and efficiency standards.

Both ICE and EV segments are witnessing innovation tailored to Malaysian consumers. Buyers now have access to hybrid options, enhanced safety features, and tech integrations regardless of propulsion type. As energy efficiency and sustainability become more prominent, competition between ICE and EV two-wheelers is expected to intensify. Market players are responding by diversifying their offerings, developing modular platforms, and expanding after-sales networks. The balance between conventional and electric models in Malaysia is evolving based on infrastructure readiness, fuel price dynamics, and consumer awareness. As the transition unfolds, both propulsion types will coexist with distinct roles in serving Malaysia’s two-wheeler mobility demand.

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Region Insights

The central region of Malaysia emerged as the dominant market for two-wheelers in 2024. This region, anchored by urban centers such as Kuala Lumpur and Selangor, is characterized by high population density, rapid urbanization, and a well-established transportation network. Daily commuting challenges due to traffic congestion and limited parking availability make two-wheelers an attractive solution for navigating city roads efficiently. Consumers in this region actively adopt scooters and motorcycles for personal and commercial mobility, supported by a wide network of dealers, service centers, and finance providers.

The Northern Region of Malaysia, which includes Penang, Kedah, Perlis, and Perak, is an important contributor to the national two-wheeler market, driven by a mix of urban centers and rural communities. According to the Road Transport Department (JPJ), this region accounts for approximately 18–20% of Malaysia’s total two-wheeler registrations. Motorcycles are a primary mode of transport, particularly in areas with limited public transit options. Penang, as a tech and manufacturing hub, sees high usage among factory workers and delivery riders, while Kedah and Perlis rely heavily on two-wheelers for agricultural and rural mobility. Local governments have also started promoting electric motorcycles, with Penang initiating pilot programs for green mobility and charging infrastructure. Brands like Modenas have strong market penetration due to affordability and local assembly presence. Overall, the Northern Region combines utility-based motorcycle demand with growing urban mobility needs, presenting a steady market for both conventional and electric two-wheelers.

Recent Developments

• In June 2025, Hong Leong Bank renewed its MoU with the Malaysia Motorcycle and Scooter Dealers Association to strengthen the two-wheeler industry by supporting a nationwide network of 4,000 dealers. The collaboration aims to enhance access to financing, spare parts, and maintenance services for gig workers and daily commuters who rely heavily on motorcycles for mobility. With over 61,000 new motorcycles registered in May 2025 alone, the partnership is positioned to play a crucial role in sustaining Malaysia’s two-wheeler-driven transport ecosystem.
• ​In August 2024, Royal Enfield launched the Himalayan 450 in Malaysia, expanding its presence in the premium adventure motorcycle segment. The bike features a 452cc liquid-cooled engine, producing 40 bhp and 40 Nm torque. It includes modern tech like ride-by-wire throttle, TFT display, and multiple riding modes. The launch aligns with growing demand for off-road capable motorcycles in the Malaysian market.
• In September 2024, Honda launched the CB350RS in Malaysia, targeting retro-style motorcycle enthusiasts with a blend of classic design and modern features. The bike is powered by a 348cc single-cylinder engine, delivering around 21 bhp and 30 Nm torque. It comes equipped with features like LED lighting, a semi-digital instrument cluster, and dual-channel ABS. The launch reflects Honda’s strategy to cater to the mid-size motorcycle segment in Malaysia.
• In September 2024, Suzuki launched the 2024 V-Strom SX in Malaysia, expanding its adventure touring lineup. The motorcycle features a 249cc oil-cooled engine delivering 26 bhp and 22.2 Nm torque, paired with a 6-speed gearbox. It includes a digital console, dual-channel ABS, and adventure-ready ergonomics. The launch caters to Malaysia’s growing demand for lightweight touring bikes with off-road capabilities.

Key Market Players

• Harley-Davidson, Inc.
• Honda Motor Co., Ltd.
• Kawasaki Motors Corp.
• KSR Group
• Modenas
• Piaggio & C. S.p.A.
• Sanyang Motor Co., Ltd.
• Suzuki Malaysia Sdn. Bhd.
• Triumph Motorcycles Malaysia
• Yamaha Motor Co., Ltd.

Report Scope:

In this report, the Malaysia Two-Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Malaysia Two-Wheeler Market, By Vehicle Type:

o    Motorcycle  

o    Scooter/Moped

·         Malaysia Two-Wheeler Market, By Propulsion:

o    Internal Combustion Engine

o    Electric Vehicles

·         Malaysia Two-Wheeler Market, By End Use:

o    Personal

o    Commercial

·         Malaysia Two-Wheeler Market, By Region:

o    Northern

o    Southern

o    Central

o    East Coast

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Malaysia Two-Wheeler Market.

Available Customizations:

Malaysia Two-Wheeler Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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