PETALING JAYA: The Malaysian Automotive Association (MAA) has raised its 2026 total industry volume (TIV) forecast to 800,000 units from its earlier projection of 790,000 units, putting the industry on track to maintain vehicle sales above the 800,000-unit mark for a third consecutive year.
The revised forecast, however, remains below the record 820,752 units sold in 2025. The upward revision came after stronger-than-expected passenger vehicle (PV) demand lifted industry sales in the first half of the year (1H26).
In 1H26, TIV rose 3.1% to 385,353 units from 372,636 a year earlier.
PV sales grew 4.2% to 361,635 units from 347,084 units, more than offsetting a 10.7% decline in commercial vehicle (CV) sales to 23,718 units from 26,552 units.
The 385,353 units sold in the first six months represented 46.6% of MAA’s revised full-year TIV forecast.
MAA president Mohd Shamsor Mohd Nor said the revised forecast reflected the strong momentum recorded in 1H26, particularly from national marques and electrified vehicles (xEVs).
“Normally in the second half, the momentum is slightly higher. There will be a lot more promotion and market activity from the brands,” he told reporters at the association’s 1H26 review yesterday.
CVs accounted for 6.2% of total sales in 1H26, down from 7.1% a year earlier, dragged by a 19.2% decline in pick-up truck sales to 15,653 units from 19,373 units.
Shamsor attributed the weakness largely to the non-eligibility of diesel-powered pick-up trucks for the fuel subsidy in 1H26.
“We are seeing some slight improvement, with the announcement of the Budi 95 for diesel in 2H26,” he said.
National marques continued gaining ground, with market share rising to a record 67% from 63% in the corresponding period last year.
Sales of national marques rose 8.6%, or by 20,343 units, to 256,304 units. Perusahaan Otomobil Kedua Sdn Bhd (Perodua) remained the market leader with a 41% share, followed by Proton Holdings Bhd at 26%. In contrast, non-national marques saw sales decline 6.3% to 129,049 units from 137,675 units, with their market share shrinking to 33% from 37%.
Asked whether MAA was concerned about the rising dominance of national marques, Shamsor acknowledged the concern but said competition remained healthy.
“Each member will have its own strategy. We are concerned, but at the same time, we encourage a competitive and friendly market,” he said. Beyond national marques, xEVs were another key growth driver during the period. xEV sales surged 69.4% to 51,782 units in 1H26 from 30,573 units a year ago.
As a result, xEVs accounted for 13.4% of total industry sales in 1H26, compared with 8.2% a year earlier.
Hybrid electric vehicle (HEV) sales rose 43.4% to 25,590 units from 17,840 units, while battery electric vehicle (BEV) sales more than doubled to 26,192 units from 12,733 units, marking the first time BEV sales surpassed HEV sales.
On the overall market performance, Shamsor attributed the stronger 1H26 sales to rising demand for sport utility vehicles (SUVs), which recorded the biggest volume increase of about 19% during the period.
He said the shift towards SUVs was also supported by growing xEV adoption, as more HEV and BEV models are being introduced in the segment.
“This trend is actually showing a movement into SUVs, which have become more BEV or HEV powertrain.”
He added that the postponement of the revised open market value excise duty framework for completely knocked-down vehicles and the new customised incentive mechanism implementation until Dec 31, 2026 had provided greater policy certainty for manufacturers and distributors.
This allowed them to continue their business operations and sales activities without immediate disruption, he added.
Shamsor said stable employment, resilient household incomes and continued consumer confidence also supported vehicle demand. “Also not forgetting the attractive financing schemes with flexible ownership programmes and aggressive promotional campaigns that encouraged vehicle purchases,” he added.
