Malaysia February 2026 Vehicle Sales Plunge 18.5% Month-On-Month, MAA Predicts March Recovery Ahead of Hari Raya

Latest sales figures released by the Malaysian Automotive Association (MAA) for February 2026 show a sharp downturn in the country’s automotive market, with a total of 52,414 passenger and commercial vehicles sold throughout the month. This represents a steep 18.5% month-on-month drop compared to January 2026’s total of 64,298 units, marking a difference of nearly 12,000 units and ending the brief positive momentum seen at the start of the year.

On a year-on-year basis, February 2026 sales also remained weak, posting a 19.4% decline from the 65,052 units sold in the same month of 2025. The MAA has attributed the significant drop in Total Industry Volume (TIV) primarily to fewer working days due to the Lunar New Year holidays, with only 17 working days recorded in February. This disrupted vehicle production and delivery schedules for automakers, slowed retail operations at dealerships, and delayed consumer purchasing decisions during the festive period.

In cumulative terms, Malaysia’s total vehicle sales for the first two months of 2026 stand at 116,712 units, reflecting a marginal 1.0% increase compared to the same period in 2025. This minimal growth indicates that overall market momentum remains soft, with no strong signs of a broad-based recovery.

Looking ahead, the MAA has forecast a strong rebound in March 2026 as the country gears up for the upcoming Hari Raya Aidilfitri festive season. Historically, major automakers in Malaysia roll out exclusive promotional packages, cash rebates, low-interest financing plans and other special offers ahead of Hari Raya to boost consumer demand, typically driving higher showroom traffic and sales volumes.

Despite the expected March recovery, the association has revised down its full-year 2026 sales forecast, citing rising living costs and weakened consumer purchasing power as key headwinds. The MAA projects total 2026 TIV to reach 790,000 units, a3.8% decline from the record-high 820,752 units sold in 2025, signalling a moderate downward trend for the local automotive market for the full year.