Malaysia’s new vehicle market declined by 13% to 63,489 units in March 2026 from 72,931 units in the same month last year, according to registration data released by the Malaysian Automotive Association (MAA).
This was the second consecutive month of decline for the market, attributed mainly to the annual Eid holidays which fell in March this year compared with April last year. In the first three months of 2026, the vehicle market declined by 3% to 182,113 units from 188,432 units in the same period last year.
The latest economic data shows GDP growth accelerated to 6.3% year-on-year in the fourth quarter of 2025, up from 5.4% growth in the third quarter, driven by stronger domestic consumption, investment, and exports. Consumer sentiment, while still strong, has become more cautious in the last two months due to rising concerns over inflation and geopolitical developments in the Middle East.
Light passenger vehicle sales declined by 4% year-on-year to 170,511 units in the first quarter, while commercial vehicle sales were slightly lower at 11,602 units. Separate industry data shows battery electric vehicle (BEV) sales more than doubled to 14,591 units in this period, led by the recently launched Proton e.Mas 5 with 6,701 units, followed by the BYD Atto 3 with 999 units and the Proton e.Mas 7 with 754 units.
Vehicle production in the country fell by 10% to 159,367 units in the first three months of the year, from 177,603 units in the same period last year.
GlobalData forecasts an almost 6% drop in light vehicle sales to 779,000 units in the whole of 2026, down from record sales of 827,000 units last year, with volumes stabilising at 780,000 units in 2027.
Market leader Perodua’s sales fell by 13% to 74,230 units in the first three months of 2026, according to local reports, despite the recent launch of the new Toyota Yaris Cross-based Traz compact SUV and the company’s first BEV model, the QV-E.
Proton reported a 40% jump in global vehicle sales to 49,140 units year-to-date from weak year-earlier levels, with the Saga by far its best-selling model with 21,770 units, followed by the Geely-based X50 compact SUV with 7,571 units and the battery-powered e.Mas 5 with 6,701 units.
Toyota’s registrations rose by 13% to 22,200 units in the three-month period, helped by the recent introduction of the new Vios Hybrid and the updated Corolla Cross HEV models.
“Malaysia vehicle sales fall 13% in March” was originally created and published by Just Auto, a GlobalData owned brand.
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