Malaysia’s new vehicle market gave two different readings in March. Sales improved strongly from February, but were still well below March 2025 as Hari Raya holidays and temporary plant shutdowns cut into working days.
The Malaysian Automotive Association (MAA) said total industry volume stood at 63,489 units in March 2026.
That was a 21.1% increase from February’s 52,414 units, helped by a rebound from the previous month’s slower pace. Against March 2025, however, the market was down 12.95%, or 9,442 units, from 72,931 units.
The year-on-year number is revealing. March is usually a busy registration month, but this year had fewer effective working days.
MAA attributed the decline to the Hari Raya festive holidays, an additional public holiday declared on March 20, and temporary plant shutdowns during the festive period.
Passenger vehicles accounted for most of the decline. Sales in the segment fell 13% year on year to 59,498 units, while commercial vehicle sales dropped 12% to 3,991 units.
For the first quarter, total vehicle sales slipped 3% to 182,113 units, compared with 188,432 units in the same period last year. Passenger vehicle sales eased 4% to 170,511 units, while commercial vehicles were almost flat at 11,602 units.
Production fell more sharply than registrations. Total output in March dropped 17% year on year to 48,129 units, made up of 45,000 passenger vehicles and 3,129 commercial vehicles. First-quarter production fell 10% to 159,367 units, from 177,603 units a year earlier.
That points to more than a slow showroom month. Carmakers were also working around the holiday period after Malaysia’s record 2025 vehicle sales.
MAA expects April sales to consolidate, so the next set of numbers should give a better read.
If registrations bounce back, March was probably just a short working month. If they stay soft, Malaysia’s car market may be losing some of the heat built up over the past few years.
