Malaysia Automotive Industry Deep Research Report 2026

Malaysia's light-vehicle total industry volume (TIV) reached 820,752 units in 2025, above 800k for two consecutive years. Q1 2026 sales fell 3.5% YoY amid policy payback and OMV rule uncertainty; full-year 2026 is forecast at roughly 725k–790k units.

Key takeaways:

1. National brands still dominate: Perodua and Proton hold over 60% combined share; Perodua registered 106,298 units in the first four months of 2026, with long waiting lists on hot models.
2. Japanese OEMs under pressure; Chinese brands reset value: Chery and BYD compete on ADAS and smart-cabin specs; BYD leads BEV registrations while CBU incentives and 2026 import rules reshape pricing.
3. Mix shifts to SUVs and electrification: SUV sales hit 228,572 units (+13% YoY) in 2025; Proton e.MAS and Perodua QV-E pull EVs into mainstream price bands.
4. Policy and cost in parallel: OMV tax, RM1,700 minimum wage and prospective lemon-law rules raise compliance costs; wider fuel subsidies support entry-level demand.