What is the revised total industry volume forecast for 2026?

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Revised 2026 Total Industry Volume Forecast Increased to 800,000 Units

Malaysia's total industry volume (TIV) for 2026 has been revised upwards to 800,000 units, an increase from the previous forecast of 790,000 units. This upward revision is primarily attributed to stronger-than-anticipated market demand. Approximately 52 per cent of this revised TIV projection is expected to be achieved in the latter part of 2026, indicating a sustained strength in the automotive market throughout the year.
Increased Demand Drives TIV Projection

The Malaysian Automotive Association (MAA) has adjusted its TIV forecast upwards due to a more robust demand environment than initially projected. This stronger demand is supported by several factors, including continued consumer confidence, attractive financing options, and aggressive promotional activities by manufacturers and distributors. The MAA president, Mohd Shamsor Mohd Nor, highlighted that the first half of 2026 showed better performance compared to the same period in the previous year, underscoring the domestic automotive market's resilience.
Growth in National Brands and xEV Segment

National automotive brands have continued to solidify their market position, capturing an estimated 67 per cent of new vehicle sales in the first half of 2026. This dominance is bolstered by strong consumer preference for sport utility vehicles (SUVs) and the rapid expansion of electric and hybrid vehicle (xEV) sales. The MAA has consequently raised its xEV sales forecast for the year to 120,000 units, a significant increase from the initial target of 100,000 units. Battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) are each anticipated to contribute approximately 60,000 units to this revised xEV target.
Commercial Vehicle Segment Faces Challenges

Despite the overall positive outlook, the commercial vehicle segment's contribution to the total TIV is expected to decrease to seven per cent from the previously forecast eight per cent for 2026. This decline is partly due to the impact of the withdrawal of diesel subsidies for private registrations, which has affected sales, particularly of pickup trucks, which saw an 11 per cent reduction. However, the introduction of the BUDI diesel subsidy is anticipated to bring about some improvements to this segment.

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What is the revised total industry volume forecast for 2026?

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