Malaysia’s new vehicle market shrank by almost 5% to 70,057 units in July 2025, down from 73,501 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA).

The Malaysian economy grew by a stronger-than-expected 4.4% year-on-year in the second quarter of 2025, following similar growth in the first quarter, underpinned mainly by continued strong domestic consumption. The central bank lowered its benchmark interest rate by 25 basis points to 2.75% in July, its first rate cut since it last hiked in April 2023, to further support consumer spending.

In the first seven months of 2025, the vehicle market declined by 5% to 443,777 units from a record high of 464,952 units in the same period last year, with light passenger vehicle sales falling by 3% to 411,522 units, while commercial vehicle sales plunged by 19% to 32,255 units.

Separate industry data showed that sales of battery electric vehicles (BEVs) in the country increased by 59% to 19,935 units year-to-date, driven mainly by China’s BYD and its Denza brand with a combined 6,988 units, the recently-launched Proton e.MAS7 with 4,689 sales, and Tesla with 2,653 units.

Total vehicle production in the country fell by 8% to 424,065 units in the first seven months of the year.

Market leader Perodua saw its sales decline by 3% to 199,670 units year-to-date, in line with the overall passenger vehicle market, underpinned by its popular Bezza and Axia models.

Proton’s global sales fell by 3.5% to 85,674 units in the first seven months of 2025, including 2,258 exports. The Saga was by far its best-selling model with 38,345 sales, followed by the Geely-based X50 compact SUV with 13,418 units - with an all-new model launched in July.

UMW Toyota reported a 5% decline in its seven-month sales to 53,163 units, with the Vios its best-selling model, followed by the Hilux pickup truck.