Market Overview - Malaysia's new vehicle market declined by over 19% to 52,414 units in February 2026 from 65,052 units in the same month last year, according to the Malaysian Automotive Association (MAA) [1] - The decline in February followed a 27% surge in January, attributed to fewer working days due to the timing of the Lunar New Year holidays [2] - In the first two months of 2026, the vehicle market increased slightly to 116,712 units, up from 115,501 units in the same period last year [2] Economic Context - Consumer sentiment has strengthened, reflected in a pickup in economic growth to 6.3% year-on-year in Q4 2025, up from 5.4% in Q3 2025, driven by stronger domestic consumption, investment, and exports [3] - The economy expanded by 5.2% in 2025, slightly up from 5.1% in 2024 [3] Vehicle Sales Performance - Light passenger vehicle sales rose by 1% to 109,117 units in the first two months of 2026 from 108,339 units a year earlier, while commercial vehicle sales increased by 6% to 7,595 units from 7,162 units [4] - Battery electric vehicle (BEV) sales surged by 154% to 9,870 units in this period from 3,850 units a year earlier, led by the Proton eMas 5 with 4,630 units [4] Production and Forecast - Vehicle production in Malaysia fell by 7% to 110,607 units in the first two months of the year, down from 119,540 units a year earlier [5] - The vehicle market is expected to rebound in March, but full-year sales are projected to weaken, with GlobalData forecasting a nearly 6% drop in light vehicle sales to 779,000 units in 2026 [5] Company-Specific Performance - Market leader Perodua's sales fell by 9% to 49,703 units in the first two months of 2026, despite launching the new Traz compact SUV and its first BEV model [6] - Proton reported a 58% increase in global vehicle sales to 33,399 units year-to-date, with the Saga being its best-selling model [6] - Toyota registrations rose by 13% to 13,591 units in the two-month period, aided by the introduction of new models [7]

Vehicle Market Overview - The Malaysian vehicle market saw a slight increase in August 2025, reaching 73,041 units compared to 72,580 units in August 2024, supported by improved inventories, new model launches, and aggressive dealer promotions [1] - In the first eight months of 2025, the vehicle market declined by 4% to 516,862 units from a record high of 537,532 units in the same period last year, with light passenger vehicle sales down by 3% and commercial vehicle sales down by 16% [3] Economic Context - The Malaysian economy expanded by 4.4% year-on-year in Q2 2025, maintaining similar growth from Q1, driven by strong domestic consumption [2] - The central bank cut its benchmark interest rate by 25 basis points to 2.75% in July 2025, marking its first rate cut since April 2023 [2] Electric Vehicle Segment - Battery electric vehicle (BEV) sales increased by 63% year-to-date to 23,396 units, primarily driven by BYD and its Denza brand, Proton's e.MAS7, and Tesla [4] - Total vehicle production in Malaysia fell by 9% to 493,176 units in the first eight months of 2025 [4] Company Performance - Perodua, the market leader, experienced a 2% decline in sales to 231,700 units year-to-date, slightly outperforming the overall passenger vehicle market [5] - Proton's global sales fell slightly to 100,902 units in the first eight months of 2025, with the Saga being its best-selling model [5] - UMW Toyota reported a 4% decline in sales to 62,246 units, with the Vios as its best-selling model [6]