Jan 2026 Auto Sales Down 30%, xEV Penetration Holds at 12.4%

LocalBusiness & Finance
11 Feb 2026 • 10:00 AM MYT
Carz Automedia
Carz Automedia

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Malaysia’s car market slowed in Jan 2026, with 67,995 new vehicles registered, according to data from data.gov.my.

That was a clear step down from Dec’s 96,970 units year-end spike, which was driven largely by final deliveries and last-minute registrations before the calendar flipped. The drop is typical for the start of the year and doesn’t point to any sudden weakness. Demand, especially in the mass market, remains intact.

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Petrol-powered cars continued to dominate, making up 56,863 registrations, or 83.6% of total sales in Jan. In fact, petrol’s share grew compared to Dec, highlighting how conventional ICE models still form the core of Malaysia’s car market, particularly when buyers become more cautious after the festive period.

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As expected, Proton and Perodua led the charge. The Proton Saga topped the charts with 10,285 units, ahead of the Perodua Bezza (8,431), Axia (6,581), Myvi (4,819) and Alza (3,012). Once again, affordable and familiar nameplates did the heavy lifting, as cost and ownership considerations stayed front of mind.

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Diesel registrations slipped to 2,738 units, accounting for 4.0% of the market, following a strong finish to 2025. Fleet and commercial demand, in particular, appeared to cool after year-end purchases were cleared.

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The Toyota Hilux remained the dominant force in the diesel segment with 1,338 units, close to half of all diesel registrations. It was followed by the Mitsubishi Triton (369), Isuzu D-Max (261), Ford Ranger (251) and Toyota Hiace (141), reinforcing the continued reliance on pick-ups for diesel demand.

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Electric vehicles (EVs) posted 6,239 registrations in Jan, translating to a 9.2% market share. While volumes eased from Dec, EVs held up better than many ICE segments, suggesting demand is becoming more consistent rather than driven purely by incentives.

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The Proton e.MAS 5 stood out as the clear EV leader with 3,068 units, far ahead of the Zeekr 7X (426) and BYD Atto 3 (389). The Chery iCaur V23 (268) and Proton e.MAS 7 (208) rounded out the top five, showing how local and Chinese brands continue to shape the EV landscape.

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Hybrid models recorded 2,155 registrations, or 3.2% of Jan sales. Volumes were softer month-on-month, but hybrids continue to appeal to buyers who want some level of electrification without relying on public charging.

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The Toyota Corolla Cross Hybrid led the segment with 430 units, followed by the GWM Haval H6 Hybrid (336) and Chery Tiggo (297). The Honda HR-V Hybrid (154) and Jaecoo J7 Hybrid (134) completed the top five.

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Combined, xEVs (EVs and hybrids) accounted for 12.4% of total registrations in Jan, unchanged from Dec despite the overall market slowdown. That consistency suggests electrified vehicles are finding a firmer footing even as sales normalise.

Looking ahead, the softer start to the year appears seasonal rather than structural. As 2026 unfolds, attention is likely to shift further toward hybrids, PHEVs and EREVs, as brands adjust pricing and product strategies in a post-incentive environment, with local and Chinese manufacturers expected to play an increasingly influential role.

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