Malaysia’s new vehicle market expanded by 11% to 90,716 units in December 2025, up from 81,735 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA). The market last month was lifted by a sharp rise in battery electric vehicle (BEV) sales ahead of the expiry of import and excise duty exemptions at the end of the year, and by end-of-year promotional campaigns by dealers.
The Malaysian economy is estimated to have expanded by just under 5% in 2025, lifted by a pick-up in domestic consumption in the final quarter and continued strong export activity despite the recent hike in US import duties. The central bank has left its benchmark interest rate unchanged at 2.75% since the 25-basis-point cut last July, its first cut since it last hiked in April 2023.
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In the whole of 2025, the vehicle market increased slightly to a new record high of 820,752 units, from 816,747 units in 2024, with light passenger vehicle sales rising by 1.6% to 759,098 units, while commercial vehicle sales dropped by 11% to 61,654 units.
Separate industry data show that sales of electrified vehicles rose by 52% to 69,360 units last year, led by a 109% surge in battery electric vehicle (BEV) sales to 30,850 units. The segment was driven higher mainly by China’s BYD and its Denza brand with a combined 15,520 sales, followed by Proton with 8,890 units, and Tesla with 7,281 units. Perodua entered the BEV segment in December with the launch of its new QVE compact crossover vehicle.
The MAA expects the overall market to decline by close to 4% to 790,000 units in 2026, after four years of record sales, citing moderating economic growth and tax changes affecting vehicle affordability. GlobalData expects a 3% drop to 800,000 units this year, followed by a further slight decline to 789,000 units in 2027.
Market leader Perodua’s sales increased slightly to 359,904 units in 2025, slightly below the passenger vehicle market’s overall performance, with the Bezza and Axia its two best-selling models.
Proton’s global sales increased by over 3% to 157,976 units last year, including a 40% increase in exports to 6,000 units. The Saga was by far its best-selling model with 74,013 sales, followed by the Geely-based X50 compact SUV with 28,057 units.
UMW Toyota reported a slight fall in wholesale deliveries to 102,220 units in 2025, with the Vios and Hilux its best-selling models.
