The Malaysian Automotive Association has increased its 2026 total industry volume forecast to 800,000 vehicles from an earlier estimate of 790,000. The revision follows stronger-than-expected demand during the first half of the year and continued confidence in the domestic market. Association president Mohd Shamsor Mohd Nor said about 52 percent of the projected annual sales are expected during the remainder of 2026.

Vehicle sales reached 385,353 units from January through June, up 3 percent from 373,636 in the same period of 2025. Total industry production rose 1.2 percent to 356,946 units, an increase of 4,320 vehicles. National brands strengthened their position, accounting for 67 percent of new-vehicle sales and recording 256,304 units, while non-national brands fell 6.2 percent to 129,049.

Demand for sport utility vehicles was a major contributor, with SUV sales rising 19 percent after several new models entered the market. Electric-vehicle sales increased 106 percent, while the broader electrified-vehicle category, which includes battery, hybrid, plug-in hybrid and fuel-cell models, grew 69 percent. The association consequently raised its 2026 electrified-vehicle forecast from 100,000 to 120,000 units, split evenly between battery-electric and hybrid vehicles.

Commercial vehicles remain a weaker part of the market. Their expected share of annual industry volume has been reduced from 8 percent to 7 percent, while pickup sales declined 11 percent following changes to diesel subsidies for private registrations. For the second half, new SUV and electrified models, steady interest rates and year-end promotions are expected to support sales, although currency movements and international trading conditions remain possible risks.