Malaysia 1H 2026 Auto Sales: EV Demand Up 106%, SUV Up 19%, MPV Down 11%, Pick-Ups Decline 19%

Malaysians purchased 385,353 vehicles in the first half of 2026, up 3% compared to the 373,636 units recorded in the same period last year, according to the Malaysian Automotive Association (MAA).

With 49% of MAA's original 2026 total industry volume forecast of 790,000 units already achieved, and with one more traditionally stronger half of the year to go, the auto distributors' club has revised its projected TIV forecast upwards to 800,000 units. By way of comparison, TIV hit a record 820,752 units last year, topping the previous high of 816,747 from 2024.

Electric Vehicles Surge

Sales of electric vehicles rose by a whopping 106% year-on-year in 1H 2026, from 12,733 to 26,192 units. Sales of hybrid vehicles rose too, but at a less spectacular rate of 43% (17,840 to 25,590 units). Should this trend continue, 2026 will be the first year that EVs outsell hybrids in Malaysia.

However, even with this massive growth, the EV share of the overall TIV is just 6.8%, which might surprise some given how much hype battery-powered cars receive. Including hybrids, sales of electrified vehicles grew by 69% year-on-year, from 1H 2025's 30,573 to 51,782 units. That represents 13.4% of TIV.

MAA does not share numbers by brand, but Proton's figures reveal that EV market leader eMas 5 contributed a significant chunk in the first half of 2026, the company sold 10,665 units of the affordable EV. The larger eMas 7, in second place, found 2,865 homes in 1H 2026. Note that MAA's figures do not include Tesla registrations, as that company isn't a member of the association.

SUV Segment Continues to Grow

MAA pointed out that the SUV sub-category grew by 19% in the first half, reflecting the body style's evolution from niche off-roaders to the default choice for family cars above RM100,000.

In the top 20 models of 1H 2026 (JPJ data), there are seven SUVs: Proton X50, Perodua Traz, Perodua Ativa, Honda HR-V, Toyota Corolla Cross, Chery Tiggo (whole range), and Proton eMas 7 PHEV. Eight if you count the Perodua Aruz, which is considered an SUV-styled MPV.

Pick-Up Trucks Decline

On the other hand, sales of pick-up trucks saw a decline of 19%. This is attributed to high diesel prices prior to the new Budi Diesel subsidy programme, which saw it align with the Budi95 petrol subsidy scheme last month. High pump prices discouraged non-commercial users, or "lifestyle" truck buyers. While there are a couple of outliers, pick-ups are largely diesel-powered.

National Makes Strengthen Dominance

Perhaps most significantly for the Malaysian auto industry, national makes carved out a 67% share of the auto sales pie, leaving just 33% for everyone else. It's a four-point jump for Proton-Perodua compared to 1H 2025, when the national-non ratio was 63:37.

This marks a stark contrast from a decade ago, when the landscape was vastly different. More recently, Chinese brands have created significant waves in the Malaysian market, reshaping the competitive dynamics of the industry.

Segment Summary

Segment Performance (1H 2026 vs 1H 2025) EVs+106% Hybrids+43% SUVs+19%MPVs-11% Pick-Up Trucks-19% Electrified Vehicles (EV + Hybrid)+69%

With TIV already at 49% of the original full-year forecast after just one half, and the second half traditionally stronger, the revised 800,000-unit target appears achievable. The continued growth of electrified vehicles now at 13.4% of the market signals a structural shift in Malaysian consumer preferences, even as the overall market remains dominated by national makes.

The decline in pick-up truck sales highlights the sensitivity of the segment to fuel pricing policies, while the sustained growth of SUVs underscores their entrenched position as the preferred family vehicle. As the year progresses, the interplay between new model launches, government policies, and evolving consumer preferences will determine whether 2026 can surpass the record TIV set in 2025.