Malaysia Box Truck Market Analysis
The Malaysia Box Truck Market is expected to register a CAGR of 6.89% during the forecast period.
Over the years, demand for box trucks witnessed a steady rise, although during the 2020 COVID-19 pandemic, the market witnessed a decline owing to the trade restrictions imposed by governing bodies. Across Malaysia, food and beverage, last-mile delivery industries suffered a steady setback which reduced the demand for box trucks.
Moreover, post-2021, the market witnessed a recovery where lockdowns and key-dependent industries recovered, which showcased strong demand for box trucks in Malaysia. Over the longer run, with increased demand for food delivery services and last-mile e-commerce, the box truck market in Malaysia is anticipated to register a higher growth rate.
Owing to the high demand for food delivery services post-COVID-19, refrigerated box truck demand has witnessed steady growth. These refrigerated box trucks helped in transporting cold storage products for several applications in Food and Beverage industries across Malaysia.
Considering these factors, the demand for box trucks is anticipated to witness a high growth rate during the forecast period in Malaysia.
Malaysia Box Truck Market Trends
Demand for Sustainable Transport to Propel the Demand
Increasing carbon emissions and climate change have come up as a potential challenge for the government of Malaysia. The transportation sector contributes significantly to greenhouse effects which is responsible for CO2 emissions. In concern to minimalize the carbon emission from the transportation sector, technologies of low-carbon emission or zero-carbon emission are required to be deployed at a vast scale.
Shifting customer preference towards electric vehicles is an evident sign for future decarbonization and simultaneously decisive for charging stations. However, the penetration of EVs is subjected to various attributes, including consumer behavior, infrastructure, and certain regional clusters. Across Malaysia's key transport industries and utilities, the sector has played an evident role in rolling down the box truck demand equipped with the electric power train.
Players have kept their stance towards sustainable transport, which has propelled the greener economy in Malaysia and equally contributed to electric box truck demand. For instance:
- In December 2022, GreenPower Motor Inc. announced its strategic partnership with Gemilang International Ltd. (GML) to collaborate for the joint development of Class 4 trucks and vans using GreenPower's EV Star Cargo and EV Star Chassis to meet the demand of fleet customers across Asia, Europe and Middle-East. In Asia company is targeting all countries, including Malaysia.
Considering these factors, demand for box trucks is anticipated to witness a high growth rate amid the rising demand for sustainable transportation.
Food Industry to Propel Long Term Demand
The food processing sector in Malaysia contributed around 10% of its GDP making it one of the key aspects for boosting the overall economy. This food processing involves the usage of key raw materials which are transported and delivered by box trucks across all processing plants.
During COVID-19 the industry suffered severely owing to people avoiding taking outside food which resonated negatively on the food processing demand. Also, the facilities were halted amid the lockdown measures which knowingly stopped the demand for box trucks across Malaysia.
Moreover, over the medium term, the industry has recovered from the scenario and thus aiding the demand for box trucks with the rise in food, raw material delivery across the food facilities in Malaysia. Also, box truck has witnessed immense demand for cold chain logistics in the food industry. The nation's cold chain logistics business is fueled by a high demand for perishable food items like meat, seafood, and fresh produce.
Due to the significance of preserving ideal temperatures, particularly for postharvest or post-production temperatures sensitive items, the use of cold chains has expanded in Malaysia with the adoption of refrigerated box trucks. One of the traits of a Halal supply chain foundation is the use of a controlled temperature to preserve the Halal certification for Halal products. Owing to this, the temperature breakdowns during the processing of halal meat are a serious issue for the industry, the temperature-controlled warehouse provides a value-added service to Malaysia's Halal logistics sector using these refrigerated box trucks for the transportation of cold chain food from one facility to another, therefore, it is anticipating healthy growth over the next few years.
Malaysia Box Truck Industry Overview
The market is primarily driven by constructive alliances between the truck manufacturer and engineering design companies, under which both jointly retrofit the box structure over the chassis of the truck.
Moreover, key players, including Wong Brothers Refrigeration Sdn Bhd., Chop Yong Cheong (CYC), etc., are seeking joint partnerships with key truck manufacturers, including Tata Motors, UD Trucks, Isuzu, Traton, and others for the same to maintain a seamless supply of the trucks. Further, the key end-use industries seek longer-term cooperation with key suppliers of box trucks to carry out their business, including food delivery, last-mile services, etc.
Malaysia Box Truck Market Leaders
Tata Motors Limited
Traton Group
UD Truck Corp.
Chop Yong Cheong (CYC)
Wong Brothers Refrigeration Sdn Bhd.
- *Disclaimer: Major Players sorted in no particular order
Malaysia Box Truck Market News
- August 2022: Swift Haulage Bhd, a major logistics service provider, announced international cooperation and MoU with Volvo Trucks Malaysto to introduce electric commercial vehicles in the country.
- December 2021: Swift Haulage Bhd announced the expansion and strengthening of its business operation in the country. The company announced its plans to expand its facilities and warehouses to propel the logistics business in the country.
