Market Overview - Malaysia's new vehicle market rebounded by 27% to 64,298 units in January 2026, compared to 50,449 units in January 2025, driven by additional working days due to the Lunar New Year timing [1] - The vehicle market was supported by high registrations of vehicles purchased before the end of 2025, new locally produced models, and aggressive year-end promotions by dealers [2] Economic Context - Consumer sentiment has improved, contributing to economic growth of 6.3% year-on-year in Q4 2025, up from 5.4% in Q3, driven by stronger domestic consumption, investment, and exports [2] - The overall economy expanded by 5.2% in 2025, slightly up from 5.1% in 2024 [2] Vehicle Sales Breakdown - Light passenger vehicle sales increased by 28% year-on-year to 60,369 units, while commercial vehicle sales rose by 15% to 3,929 units [3] - Battery electric vehicle (BEV) sales surged to 6,239 units from 1,691 units a year earlier, with the Proton eMas 5 leading at 3,068 units sold [3] Production and Future Outlook - Vehicle production in Malaysia rose by 6% to 60,866 units in January 2026, compared to 57,450 units in January 2025 [4] - The vehicle market is expected to weaken in February 2026 due to the Lunar New Year holidays, with GlobalData forecasting a 3.2% decline in light vehicle sales to 801,000 units for the entire year [4] Company Performance - Perodua's sales increased by 12% to 26,130 units in January 2026, supported by the launch of the new Traz compact SUV and its first BEV model [5] - Proton reported a 35% increase in global vehicle sales to 19,833 units, with the Saga being the best-selling model [5] - UMW Toyota experienced a nearly 23% rise in wholesale deliveries to 6,598 units, with the Vios and Hilux as top sellers [6]

Core Insights - The ASEAN LV market experienced a growth of 3% YoY in H1 2025 but began H2 with a decline of 1% YoY, primarily due to negative sales in Indonesia, Malaysia, and the Philippines [1] Indonesia Market Summary - LV sales in Indonesia fell by 17% YoY in July and continued to decline by 19% YoY in August, marking four consecutive months of double-digit declines, leading to an overall decrease of 10% YoY from January to August [2] - Political uncertainty and the potential for protest recurrence, along with a decrease in consumer income and increased debt payments, have led to a downward revision of the long-term sales outlook for Indonesia [3] - The projected LV volumes for Indonesia in 2025 are now estimated at 720k units, the lowest annual total in 15 years, excluding the COVID-19 pandemic year of 2020 [3] Malaysia Market Summary - In Malaysia, LV sales dropped by 2% YoY in July, totaling 71k units, but August saw a 3% YoY increase and a 5% MoM increase to 75k units, the highest monthly sales total for the year [4] - The growth in August was driven by new model deliveries from Chinese brands and national brands, alongside ongoing price reductions stimulating sales [4] - The sales outlook for Malaysia in 2025 has been revised slightly upward to 790k units, with expectations of a boost in Q4 2025 as consumers rush to purchase before anticipated price hikes in 2026 due to changes in tax calculation methodology [5]