Kuala lumpur: Malaysia's automotive sector experienced a significant increase in total industry volume (TIV) in January 2026, with a year-on-year (y-o-y) rise of 28.7 percent to 64,298 units. This surge was primarily fueled by heightened deliveries in both passenger and commercial vehicle segments.
According to BERNAMA News Agency, CIMB Securities Sdn Bhd noted that the Malaysian Automotive Association (MAA) attributed the robust y-o-y performance to several vehicle launches at the end of 2025.
MAA highlighted that the growth was also due to a low-base effect, as January 2025 had a shortened 19-day working month because of the Chinese New Year (CNY) holidays. Despite the y-o-y increase, January 2026 saw a month-on-month (m-o-m) decline of 29.1 percent in TIV, largely due to a high base in December 2025, coinciding with year-end deliveries and the cessation of the completely built-up (CBU) electric vehicle (EV) tax exemption.
CIMB Securities reported a 5.9 percent y-o-y rise in total production volume, reaching 60,866 units in January 2026. However, the MAA anticipates February 2026 sales to be subdued, given an even shorter 17-working-day month post-CNY holidays.
The national brands' market share expanded significantly by 5.4 percentage points y-o-y to 71.4 percent in January 2026. This growth was predominantly driven by an increase in sales volume at Proton Holdings Bhd, which more than doubled to 19,750 units following the successful launch of the 2026 Proton Saga. Meanwhile, Perusahaan Otomobil Kedua Sdn Bhd, the market leader, recorded a 12.4 percent y-o-y volume growth in January 2026, bolstered by strong demand for models like Bezza, Myvi, and the newly launched Traz.
CIMB Securities is maintaining its 2026 TIV forecast of 800,000 units, reflecting a slight decrease of 2.5 percent y-o-y but still slightly ahead of MAA's projection of 790,000 units. The forecast considers clearer policy directions post-implementation of the BUDI95 petrol subsidy program and assurance that the open market value revision will not cause immediate vehicle price hikes.
The investment bank also predicts an increase in national EV penetration in 2026, driven by the launch of Proton e.MAS 5 and continued incentives for completely knocked-down EVs, despite expectations of demand normalization following the initial rush for CBU EV purchases and ongoing inflationary pressures and rising living costs.