Malaysia Automotive Association Raises 2026 Industry Volume Forecast to 800,000 Units

The Malaysian Automotive Association (MAA) has boosted its 2026 total industry volume (TIV) forecast to 800,000 units, surpassing the initial target of 790,000 units. This upward revision is driven by a robust sales performance in the first half of the year.

MAA President Mohd. Shamsor Mohd. Zain reported that the automotive industry recorded sales of 385,353 units in the first six months of 2026. This figure represents a 3% increase compared to the same period last year and accounts for 49% of the original TIV projection, indicating sustained positive growth momentum.

Consumer confidence is expected to remain a key driver for TIV performance in the second half of the year, supported by stable job growth and household income. Additionally, favorable interest rates and Bank Negara Malaysia's decision to maintain the Overnight Policy Rate (OPR) at 2.75% will continue to bolster demand for new vehicles. The extension of the New Customised Incentive Mechanism (NCM) and Excise Duty Regulations P.U. (A) 402 until December 31, 2026, also provides greater certainty for the industry in the latter half of the year.

Furthermore, the MAA has raised its forecast for electric and electrified vehicle (xEV) sales to 120,000 units, up from the initial target of 100,000 units, which would constitute 15% of the total TIV forecast for the year. Battery electric vehicles (BEV) and hybrids are anticipated to contribute equally, with each segment projected to sell 60,000 units. In terms of segment performance, sports utility vehicles (SUV) and four-wheel-drive (4WD) vehicles showed the highest growth at 19%, reaching 118,837 units in the first half. Conversely, the pickup segment experienced a sales decline of 19% to 15,653 units due to slower demand.