Malaysia’s new vehicle market declined by almost 6% to 54,832 units in June 2025, from 58,142 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA).

GDP growth in the country slowed to 4.4% year-on-year in the first quarter of 2025, from a downwardly revised 4.9% in the fourth quarter of 2024, reflecting slowing export growth and slightly weaker domestic consumption growth. Second-quarter growth is also expected to be weak. Malaysia’s central bank cut its benchmark interest rate by 25 basis points to 2.75% at July 2025, the first cut since its last hike in May 2023, as it looks to stimulate domestic growth.

In the first six months of 2025, the market declined by 5% to 372,636 units from a record high of 391,451 units in the same period last year, with light passenger vehicle sales falling by 3% to 347,084 units while commercial vehicle sales plunged by 21% to 26,552 units.

Separate industry data showed that sales of battery electric vehicles (BEVs) increased by 61% to 17,143 units year-to-date, driven mainly by China’s BYD Auto and its Denza brand with a combined 6,015 units, and the recently-launched Proton e.MAS7 with 4,000 sales, while Tesla sold 2,400 units.

Total vehicle production in the country fell by 10% to 392,264 units in the first half of the year.

Market leader Perodua reported a 2% sales decline to 166,188 units year-to-date, slightly outperforming the overall market, with the Bezza and Axia being the country’s two most popular models with 46,175 and 40,650 sales respectively.

Proton’s global sales fell by 2% to 72,156 units in the first six months of 2025, including 2,250 exports. The Saga was by far its best-selling model with 31,720 sales, followed by the Geely-based X50 compact SUV with 11,350 units, and the Geely-based S70 sedan with 9,345 units. UMW Toyota reported a 6% decline in first-half sales to 44,286 units, with the Vios its best-selling model with 13,390 sales, followed by the Hilux pickup truck with 11,320 units.