Malaysia’s new-vehicle market grew during the first half of 2026, but the headline figure concealed weaker sales across much of the industry.
Total industry volume rose 2.9% year on year to 385,353 units between January and June. Excluding Proton, however, sales fell 5.7%, according to the latest sector analysis from CIMB Research.
The contrast shows how heavily first-half growth depended on Proton, while many competing manufacturers faced a tougher market.
CIMB has now restored its full-year sales forecast to its original 800,000-unit projection. The research house had lowered the estimate to 780,000 units in April, but revised it upwards by 2.6% after reviewing the stronger-than-expected first-half figures.
It expects demand to improve during the second half, traditionally the stronger sales period, helped by promotions, new model launches and rising interest in electrified vehicles.
The continuation of the Budi95 petrol subsidy and wider diesel assistance should also support purchases. First-half sales represented about 48% of CIMB’s revised forecast, while the second half has historically contributed around 54% of annual volume.
The Malaysian Automotive Association had separately raised its own 2026 forecast from 790,000 to 800,000 units on July 21, citing stronger demand and higher projected electric and hybrid vehicle sales.
Despite returning to its original 800,000-unit estimate, CIMB retained a neutral view of the automotive sector. Intense price competition and currency pressure could limit earnings growth even if total vehicle sales improve.
