Malaysia’s new vehicle market was slightly higher at 58,490 units in September 2025, compared with 58,032 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA). Compared with August, the market was down by 22%, reflecting mainly the fewer working days during the month.

Advanced estimates show that the Malaysian economy expanded by 5.2% year-on-year in the third quarter of 2025, up from 4.4% in the second quarter, driven by strong domestic consumption. The central bank lowered its benchmark interest rate by 25 basis points, to 2.75%, in July to support the domestic economy - its first rate cut since it last hiked in April 2023.

In the first nine months of 2025, the vehicle market declined by 3% to 579,336 units from a record high of 595,883 units in the same period last year, with light passenger vehicle sales falling by 2% to 536,122 units, while commercial vehicle sales dropped by 14% to 43,214 units. Total vehicle production in the country fell by 7% to 552,129 units in the first nine months of the year.

Separate industry data show that battery electric vehicle (BEV) sales in the country surged by 70% to 26,928 units year-to-date, driven mainly by China’s BYD and its Denza brand with 9,122 units combined, the recently-launched Proton e.MAS7 6,212 sales, and Tesla with 3,846 units.

The MAA said it expects BEV sales to remain strong in the fourth quarter, ahead of the government’s plans to withdraw tax exemptions on completely built-up units at the end of the year, and also due to the expected year-end promotional campaigns.

Market leader Perodua’s sales are estimated to have declined by 2% to 255,000 units year-to-date, in line with the overall passenger vehicle market, supported by popular models such as the Bezza and Axia compact cars.

Proton’s global sales increased by 1% to 114,297 units in the first nine months of 2025, including a 56% increase in exports to 3,959 units. The Saga was by far its best-selling model with 50,734 sales, followed by the Geely-based X50 compact SUV with 21,143 units - with an all-new model launched in July.

UMW Toyota reported a 4% decline in its nine-month sales to 70,418 units, with deliveries underpinned by fuel-efficient models such as the Corolla Cross Hybrid and Innova Zenix Hybrid.