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PROTON Holdings Bhd led Malaysia’s electric vehicle (EV) market in February 2026, recording 1,802 registrations even as overall EV numbers declined sharply from the previous month.
According to data published by the Road Transport Department (JPJ) figures include vehicles outside the Malaysian Automotive Association (MAA) membership, with PROTON maintaining its position as the country’s top EV brand.
In second place was BYD with 469 units, reflecting a 49 per cent month-on-month drop, followed by Chery, which also recorded a 35 per cent decline.
Overall, EV registrations fell 42 per cent month-on-month to 3,635 units in February, accounting for 7.9 per cent of total vehicle registrations, compared with 5.1 per cent in 2025.
Analysts attributed the softer performance to seasonal factors and fewer working days in February. RHB Investment Bank Bhd analyst Iftaar Hakim Rusli said the trend was broadly in line with expectations.
“From an EV perspective, PROTON remained the best-selling brand in February based on JPJ data, which also includes non-MAA members,” he said in a research note.
He added that demand for EVs is expected to remain skewed towards locally assembled (CKD) models such as those produced by Proton Holdings Berhad and Perusahaan Otomobil Kedua Sdn Bhd, which continue to benefit from tax incentives through to the end of 2027.
He said these incentives are likely to remain a key driver supporting near-term EV demand in the local market.
“PERODUA registered only one EV in February 2026, which may reflect its higher pricing compared with PROTON’s e.MAS 5 model,” he added.
In terms of the broader automotive sector, the Malaysian Automotive Association reported total industry volume (TIV) of 52,414 units in February, representing a 19 per cent decline month-on-month and a 20 per cent drop year-on-year.
For the first two months of 2026, however, TIV rose 1.3 per cent year-on-year to 116,712 units compared with 115,180 units in the same period last year.
RHB Investment Bank maintained a “neutral” outlook on the automotive sector, assuming full-year TIV of 805,000 units for 2026, representing a two per cent year-on-year decline.
Iftaar said that after four consecutive years of record performance, the car replacement cycle may begin to weaken, posing downside risks to vehicle sales.
“TIV in the first quarter of 2026 is expected to decline due to a lower number of working days amid two major festive seasons, but a rebound is more likely in the second quarter of 2026 as production levels increase,” he said. - March 24, 2026
