Vehicle sales poised to reach 800,000 units in 2026 on rising demand

PETALING JAYA: Malaysia’s automotive industry remains on track to achieve a total industry volume (TIV) of 800,000 units in 2026, supported by stronger second-half demand, despite softer vehicle sales in August.

According to CIMB Research, the stronger second half (2H) demand will be supported by promotions and rising electric vehicle (EV) sales.

“We maintain our 2026 TIV forecast of 800,000 units, supported by a seasonally stronger 2H, aggressive promotions, and rising EV demand,” the research house said.

It added that the restored 300-litre monthly petrol subsidy quota, wider diesel-subsidy coverage and banking-system liquidity for hire-purchase financing should support vehicle demand in the near-term.

TIV fell 3% month-on-month and 4.1% year-on-year (y-o-y) to 71,428 units in August, following lower passenger and commercial vehicle deliveries.

However, cumulative TIV increased 1.9% y-o-y to 530,396 units during the first eight months of 2026.

“TIV grew 1.9% largely underpinned by Proton, which logged 38.5% y-o-y sales growth on robust demand for the Saga and its EV models. Excluding Proton, industry TIV would have declined by 6.6% y-o-y,” CIMB Research said.

Sport utility vehicle sales grew 18.8%, while Chinese manufacturers’ sales rose 28%, lifting their market share to 7.7% from 6.1%.

The research house said Budget 2027 could provide greater clarity on EV incentives after the existing tax exemptions for completely knocked-down EVs expire at the end of 2027.

CIMB Research said its preferred stocks are Bermaz Auto Bhd, whihc it rated “buy” with a RM1.25 target price, and HI Mobility Bhd, also rated a “buy” with a RM2.80 target price.