Malaysia’s automotive market in H1 2026: 6 Key trends and insights

The Malaysian Automotive Association (MAA) has released the data on total vehicle sales in the country from January to June 2026. During the first half of the year, the market showcased stronger-than-expected performance, prompting the MAA to revise the full-year TIV forecast from 790,000 to 800,000 units.

Here’s a closer look at the 6 key trends and insights of Malaysia’s automotive market in H1 2026 -

1. Overall market continues to grow

In the first six months of the year, a total of 385,353 vehicles were sold, which represents a hike of 3% over the same period in 2025. Here’s a breakdown of the total sales figure into passenger and commercial vehicle categories -

Passenger vehicles	361,635 units (4% y-o-y growth)
Commercial vehicles	23,718 units (11% y-o-y decline)
Total	385,353 units (3% y-o-y growth)

The table above shows that the passenger vehicle segment accounts for a significant share of overall sales. The passenger vehicle segment experienced a year-on-year growth of 4% while the commercial segment saw a decline of 11 %. Well, the increasing passenger volume helps offset weaker demand for commercial vehicles, contributing to overall market growth.

2. National brands are stronger than ever

The market witnessed the growing dominance of national brands in the first half of the year. Let’s take a look at the top 10 car brands in Malaysia between January and June 2026.

Top 10 car brands in Malaysia -  January to June 2026

No.	Brands	Units sold
1	Perodua	158,295
2	Proton	98,010
3	Toyota	50,591
4	Honda	27,549
5	Omoda Jaecoo	7,810
6	Mitsubishi	6,767
7	Mazda	6,003
8	BYD	5,675
9	Chery	5,591
10	Jetour	5,048

The data above reveals the following insights -

• Perodua continues to be Malaysia’s best-selling car brand, followed by Proton.
• While Perodua leads by a huge margin, the two national brands accounted for 256,305 registrations, holding 67% of the market share, which is up from 63% a year ago.
• Toyota continues to be the best-selling non-national brand, while Honda remains in fourth place.
• Chinese brands like Omoda | Jaecoo, BYD, Chery, and Jetour are steadily strengthening their presence.

3. Affordable and practical cars remain Malaysians’ top choice

Although SUVs are increasingly gaining popularity, Malaysians still like to buy affordable and practical cars. Among the country’s top-selling cars are Perodua Bezza, Proton Saga, Perodua Axia and Perodua Myvi, which are known for their affordability, lower running costs and practicality.

Top 10 cars sold in Malaysia  - January to June 2026

No.	Models	Units sold
1	Perodua Bezza	47,463
2	Proton Saga	44,234
3	Perodua Axia	36,910
4	Perodua Myvi	29,112
5	Perodua Alza	19,504
6	Proton X50	13,646
7	Proton S70	12,832
8	Honda City	12,121
9	Perodua Traz	10,753
10	Proton e.MAS 5	10,665

The data above reveals the following insights -

• Five of the top ten best-selling cars in Malaysia are from Perodua, while four are from Proton.
• The Honda City is the only non-national model to make the top 10.
• The list also features one fully-electric vehicle, the Proton e.MAS 5, representing the growing popularity of electric cars in Malaysia.
• Another key insight is that sedans dominate the rankings as four out of the top 10 models belong to this segment - Bezza, Saga, S70, and City.

4. EV adoption has entered a new phase

In the first half of 2026, a total of 26,192 pure EVs were sold in Malaysia, representing a tremendous year-on-year growth of 106%, despite the rollback of import duty exemption for CBU models on 31 December 2025.

Another important highlight is that electric vehicle sales have overtaken hybrid vehicle sales for the first time and now account for 6.8% of Malaysia’s total vehicle market.

Category	Units sold
Hybrid vehicles	25,590
Electric vehicles	26,192 (106% y-o-y growth)
Total XEV	51,782 (69% y-o-y growth)

Here are the top 10 EVs sold in Malaysia in the first half of 2026 -

Top 10 EVs sold in Malaysia - January to June 2026

No.	Models	Units sold
1	Proton e.MAS 5	10,665
2	Proton e.MAS 7	2,865
3	BYD Atto 3	2,244
4	Zeekr 7X	1,725
5	iCaur V23	1,651
6	BYD Seal 6	1,150
7	BYD Sealion	1,087
8	Tesla Model Y	1,001
9	Tesla Model 3	961
10	iCaur 03	922

The data above reveals the following insights -

• Proton e.MAS 5 is the runaway leader in the Malaysian EV market, as its sales are nearly four times those of the second-placed model, the e.MAS 7.
• BYD has three models in the top 10 best-selling EVs in Malaysia.
• Other than BYD, Chinese brands like Zeekr and iCaur are also winning over Malaysian consumers.
• World’s top EV giant Tesla also managed to secure two spots in the list.

5. Proton has become Malaysia’s EV king

Proton has become the undisputed leader of Malaysia’s electric vehicle market, with total registrations of 13,530 units during the first half of the year. Looking at the total EV sales in H1 2026, we can say that almost one in every two EVs sold in Malaysia is Proton.

Top 10 EV brands in Malaysia - January to June 2026

No.	Brands	Units sold
1	Proton	13,530
2	BYD	5,675
3	iCaur	2,573
4	Zeekr	2,086
5	Tesla	1,962
6	Leapmotor	956
7	MG	839
8	Xpeng	754
9	TQ Wuling	461
10	BMW	376

The data above reveals the following insights -

• Proton has a massive lead with more than twice the registrations of second-placed BYD, which is the leading foreign EV brand here.
• Chinese brands dominate the local EV market, with 7 of the top 10 brands from China.
• Tesla and BMW are the only two non-Chinese brands that appear in the top 10 list.

6. Chinese automakers continue to expand their footprint in Malaysia

In recent years, several Chinese brands have entered the Malaysian automotive space, with some now emerging as major players across multiple vehicle segments. Omoda | Jaecoo, BYD, Chery, and Jetour are among the country’s top 10 best-selling brands. And if we see EV category, 7 of the top 10 brands are Chinese, including BYD, iCaur, Zeekr, Leapmotor, MG, Xpeng and TQ Wuling.

What lies ahead in H2 2026?

Well, with this strong momentum, the Malaysian automotive industry is now geared up for the second half of the year, where sales are expected to surpass the first half performance, supported by new launches, continued consumer demand, and attractive year-end deals.  If current trends continue, 2026 could be another milestone year for the industry, highlighting its rapid evolution.

Also read: 2026 Proton e.MAS 7 vs 2026 BYD Atto 3: Head-to-head comparison