PETALING JAYA: Proton Holdings Bhd saw significant market share gains in March 2026, despite a softer overall automotive industry performance.
The latest Malaysian Automotive Association’s (MAA) total industry volume (TIV) data showed Proton’s sales rose 13% month-on-month (m-o-m) and year-on-year (y-o-y) to 15,243 units, lifting its market share from 18% to 26%.
“This was supported by robust demand for recently launched models,” UOB Kay Hian (UOBKH) Research said, highlighting continued traction for lower priced offerings such as the Saga and e.MAS 5.
Its close rival Perusahaan Otomobil Kedua Sdn Bhd or Perodua recorded more modest growth, with sales increasing 4% m-o-m to 24,530 units, while its market share slipped from 45% to 41% over the same period.
Industry-wide, TIV rebounded to 63,489 units in March, up 19% from February, driven largely by festive promotional campaigns. However, on a y-o-y basis, sales declined 13% due to fewer working days and temporary plant shutdowns during the festive period.
For the first quarter of 2026, cumulative TIV fell 3.5% y-o-y to 182,113 units, weighed down by a sharp 17% decline in non-national brands. Japanese marques saw a partial recovery in March, led by Honda and Mazda, but their cumulative sales for the quarter remained down by 30% y-o-y, resulting in a drop in market share.
China brands, including BYD and Jaecoo, also posted a m-o-m rebound, with their combined market share rising to 6.2%.
Looking ahead, UOBKH Research expects vehicle sales to moderate in April following the festive-driven surge, with potential downside risks in the second quarter due to softer consumer sentiment amid geopolitical tensions and higher oil prices.
However, it believes the overall impact will be limited as fuel subsidies continue to cushion consumers.
The research house maintained its 2026 TIV forecast at 790,000 units, reflecting a gradual normalisation in the sector after two strong years, while keeping a market weight rating on the industry.
Meanwhile, TA Research maintained an “underweight” stance on the automotive sector, citing persistent demand headwinds.
“We maintain our ‘underweight’ stance as the March rebound appears largely seasonal rather than a sustained recovery,” the research house said, adding that industry volumes are expected to decline in 2026.
Based on data from the Road Transport Department Malaysia, electric vehicle (EV) registrations rose to 4,800 units in March 2026, representing a 29.8% m-o-m and 58.5% y-o-y increase, TA Research said.
Cumulatively, EV registrations reached 14,600 units in the first quarter, more than doubling from a year earlier. Proton led the EV segment with a dominant 50.4% market share, driven by demand for e.MAS.
This was followed by BYD at 18.6% market share and Tesla at 7.2%, with smaller contributions from other emerging brands from China. TA Research remains cautious on the broader sector outlook as it projects TIVs of 750,000 units for 2026, representing an 8.6% y-o-y decline.
The research house highlighted several risks, including weaker vehicle replacement cycles, rising living costs and intensifying competition. It also warned that fading order backlogs and potential policy changes, such as subsidy rationalisation, could further weigh on demand.
