Malaysia’s automotive market is now expected to record total industry volume (TIV) of 800,000 units in 2026, exceeding the earlier forecast of 790,000 units as robust demand for SUVs and electrified vehicles (EVs) sustains sales momentum.
The Malaysian Automotive Association (MAA) said about 52% of the revised full-year projection is expected to be achieved in the remaining months of 2026.
MAA president Mohd Shamsor Mohd Nor said the stronger outlook reflected resilient consumer confidence, stable economic conditions and continued demand for new models.
He shared that TIV rose 3% to 385,353 units in the first half of 2026 (1H26) from 373,636 units in 1H25.
National marques captured 67% of new vehicle sales, with registrations rising to 256,304 units.
In contrast, non-national brands recorded a 6.2% decline to 129,049 units from 137,675 units previously.
SUV sales jumped 19%, supported by fresh model launches, including new EVs from national manufacturers.
Total industry production increased 1.2% to 356,946 units during the six-month period.
MAA also upgraded its 2026 electrified vehicle sales forecast to 120,000 units from 100,000 units previously, with battery EVs and hybrid EVs are each projected to account for about 60,000 units.
“EV sales more than doubled in the first half, surging 106%, while overall xEV sales rose 69% year-on-year.
“The category includes battery, hybrid, plug-in hybrid and fuel-cell EVs,” he shared.
Meanwhile, Mohd Shamsor said commercial vehicles are expected to contribute 7% of full-year TIV, down from the earlier estimate of 8%.
Pickup truck sales declined 11% following the withdrawal of diesel subsidies for private registrations, although MAA expects the targeted diesel subsidy initiative to provide some relief.
Vehicle demand in the second half is expected to be supported by new SUV and xEV launches, attractive financing packages, year-end promotions and stable interest rates.
MAA, however, cautioned that geopolitical tensions, currency volatility and global trade conditions could still affect the market outlook.
