Malaysia’s new vehicle market fell by 2% year-on-year to 71,428 units in August 2026, down from 73,041 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA).

Last month’s moderate decline followed strong growth in the previous two months, which was supported by a recent pick-up in economic growth, with GDP growth accelerating to 5.8% year-on-year in the second quarter, up from 5.4% in the first quarter, according to government data.

In the first eight months of 2026, the vehicle market expanded by 3% to 530,478 units, from 516,862 units in the same period last year, driven by a 4% rise in passenger vehicle sales to 497,595 units, while commercial vehicle sales declined by 14% to 32,883 units. Overall vehicle production in the country increased by 1% to 496,985 units in this period, from 493,716 units a year earlier.

Separate industry data show that sales of battery electric vehicles (BEVs) more than doubled to 47,500 units in the first eight months of the year, led by Proton with 21,840 sales, followed by BYD-Denza with 7,780 units and Chery with 3,840 units.

Market leader Perodua’s sales fell by almost 5% to 219,560 units year-to-date, with the Bezza its best-selling model with 65,697 sales. The company recently launched 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 141,421 units in the first eight months of the year, including 6,059 overseas sales. The Saga was by far its best-selling model with almost 60,000 sales, followed by the Geely-based X50 compact SUV with 19,910 units and the battery-powered e.Mas 5 with 18,013 units.

Toyota’s local sales declined by 9.5% to 72,942 units year-to-date, underpinned by strong demand for models such as the Hilux pickup truck and the Vios compact sedan.

The MAA recently raised its full-year 2026 total market forecast to 800,000 units, up from its previous forecast of 790,000 units, following the market’s strong performance in June and July. GlobalData is forecasting a 2% drop in light vehicle sales to 813,000 units this year, down from a record 827,000 units last year, with volumes expected to decline slightly to 807,000 units in 2027.