KUALA LUMPUR, July 22 (Xinhua) -- Malaysia's automotive market remained resilient in the first half of 2026, with total industry volume (TIV) rising 3 percent year-on-year to 385,353 units from 373,636 units a year earlier, supported by sustained consumer demand and a stable economic environment, the Malaysian Automotive Association (MAA) said on Tuesday.
Total industry production (TIP) also improved during the period, increasing 1.2 percent to 356,946 units from 352,626 units in the first half of 2025.
The MAA attributed the higher vehicle sales to stronger demand for sport utility vehicles, which grew 19 percent mainly driven by Proton electric vehicle models and new model introductions. Sales of electrified vehicles, including battery electric vehicles, hybrid electric vehicles, plug-in hybrid electric vehicles and fuel-cell electric vehicles, surged 69 percent following successful new model launches.
The association said policy certainty following the postponement of the implementation of P.U.(A) 402 and the New Customized Incentive Mechanism also allowed manufacturers and distributors to continue business operations and sales activities without immediate disruption.
Consumer confidence, supported by stable employment and household income, together with attractive financing schemes, flexible ownership programs and aggressive promotional campaigns, further supported vehicle purchases despite global uncertainties.
Following the stronger-than-expected first-half performance, the MAA raised its 2026 TIV forecast to 800,000 units from 790,000 units previously. However, the revised forecast remains below the 820,752 units recorded in 2025. ■