Malaysia car sales hits highest TIV ever in 2025 with 820,752 units sold

For the fourth consecutive year in a row, Malaysia’s Total Industry Volume (TIV) set another record by achieving 820,752 units sold, a 0.5% increase from the previous year, which was 816,747 units. Moreover, 90,716 units were sold in December 2025 alone, contributing to the fourth quarter units sold, which were 816,747 units, both setting new records. (81,735 units for December 2024 / 241, 416 units for Q4 2024).

The Malaysian Automotive Association (MAA) says the cause of the 2025 TIV growth was due to:

Robust economy driven by strong domestic demand and export recovery (GDP grew by 4.7% in the first 2025 three quarters)
Reduced Overnight Policy rate by 2.75% since July 2025, providing favourable financing
Stable socio-political environment
Low unemployment rate (11 year low at 2.9%)
Strong order backlogs, particularly in the A-segment
EV sales rose by 78%
Aggressive promotion campaigns

Passenger vehicles expanded by 13% to 228, 572 units in 2025, compared to the previous year of 201,565 units, whereas commercial vehicles saw a decline of 11% in 2025, due to the removal of the diesel subsidy back in June 2024.

In terms of Total Industry Production (TIP), Malaysia saw a drop of 5% (747,780 units versus 2024’s 790,347 units) as fully-imported CBU electric vehicles were in high demand ahead of the year-end expiry of incentives.

Looking at Total Industry Volume (TIV) by National and Non-national brands, the national brand increases its market share (62.3% versus 2024’s 61.9%), improving by 0.4% to 511,468 units. Meanwhile, the non-national brand decreased by 0.6% to 309,258 units, mainly caused by low sales of commercial vehicles sold.

Forecast for 2026 sees MAA targeting a lower TIV of 790,000 units. 730,000 units for passenger vehicles and 60,000 units for commercial vehicles.