Sales of new motor vehicles have shown positive growth in the first half of 2025 (1H 2026), with the total industry volume (TIV) reaching 385,353 units, according to the Malaysian Automotive Association (MAA).
Announced during its press conference held earlier today, this volume represents 49% of the earlier TIV forecast for 2026 of 790,000 units made by MAA, marking a 3% increase or by 11,717 units over the same period last year.
National Makes Hold 67% Market Share
From the 385,353 units delivered, local automotive brands Perodua and Proton have once again dominated the market with up to 67% market share, where 256,304 national-branded vehicles were delivered during this period.
This also means non-national car brands saw their market share drop significantly to only 33% in 1H 2026, with a total of 129,049 units sold. In comparison, non-national brands sold 137,675 units in 1H 2025, where their market share was capped at 37%.
This latest revelation follows the same trend for the past two years, where national brands have slowly increased their market shares from 62% in 2024 to 63% in 2025, with 2026 so far being the most dominant year for P1 and P2 in recent times.
EV Sales Overtake Hybrid for the First Time
One big surprise for 1H 2026 is that EV sales finally overtake hybrid vehicle sales for the first time, where a total of 26,192 EVs were delivered compared to 25,590 hybrids during this time period.
For comparison, hybrid vehicles have been dominating over their fully electric counterparts for years, with 38,515 units sold in 2025 compared to 30,848 units for EVs.
All in all, the first half of 2026 also saw the sudden surge of electrified vehicle (xEV) sales, with a total of 51,782 xEVs sold compared to 30,573 sold in 1H 2025—a significant 69% increase.
TIP Still Less Than TIV
Moving on to the production side, 1H 2026 once again saw the local total industry production (TIP) being less than TIV, with a total of 356,946 units being produced so far this year.
Comprising 336,031 passenger vehicles and 20,915 commercial vehicles, the local TIP does see a slight 1% increase, or by 4,320 units over the same period last year, where 352,626 units were produced in 1H 2025.
New xEVs Launch, Policy Certainty Drives Vehicle Sales
According to the MAA, among the key contributing factors for the positive TIV record in 1H 2026 are higher demand for SUVs and the launch of many new xEV models in recent times, to name a few.
More importantly, the association also highlighted policy certainty, such as the postponement of the implementation of P.U.(A) 402 and the New Customised Incentive Mechanism (NCM) until end-June 2026, which does provide greater certainty to manufacturers and distributors, allowing business operations and sales activities to continue without immediate disruption.
Looking ahead, MAA has revised its TIV forecast for 2026 to 800,000 units compared to its initial forecast of 790,000 units, citing customer confidence, good financing conditions with stable interest rates, as well as new model launches in the second half of the year (2H 2026) are expected to stimulate demand.
Having said that, the industry remains cautious of external risks, particularly geopolitical developments, exchange rate volatility, and evolving global trade conditions, which could influence market performance in the near future.
