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HomeNews2025 Malaysia xEV Market Grows 52% – HEV Leads with 38k+ Sales, BEV Surges 109%

2025 Malaysia xEV Market Grows 52% – HEV Leads with 38k+ Sales, BEV Surges 109%

Jan 21, 2026
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Malaysia’s electrified vehicle (xEV) market maintained strong growth in 2025, with total sales hitting a new high of 69,363 units – a 52% year-on-year increase, according to official data from the Malaysian Automotive Association (MAA). Hybrid Electric Vehicles (HEVs) remained the top choice, while Battery Electric Vehicles (BEVs) recorded explosive growth, narrowing the gap significantly.

Market Dynamics: HEV Stability vs BEV Momentum

  • HEV’s steady leadership: With over 38,000 units sold, HEVs retained their lead by nearly 8,000 units. They remain the "low-risk transition option" for Malaysian buyers, eliminating charging anxiety while offering better fuel efficiency than petrol vehicles. No changes to driving habits or reliance on charging infrastructure make them particularly popular among family users.
  • BEV’s explosive growth: BEV sales surged over 100% to exceed 30,000 units, driven by factors like more affordable models, expanding product choices, and improved charging networks. A year-end rush to register fully imported (CBU) BEVs before tax exemptions expired on December 31, 2025, further boosted sales.
  • xEV penetration: xEVs accounted for ~8.4% of Malaysia’s total industry volume (TIV) of 820,752 units in 2025. December 2025 saw a record monthly xEV share of 12.4%, reflecting strong end-of-year demand.

Top Performers & Consumer Trends

  • HEV bestsellers: The Toyota Corolla Cross Hybrid led the segment with 1,166 units in December alone, followed by the GWM Haval H6 Hybrid and Chery Tiggo Hybrid. Honda’s HR-V and CR-V hybrids also maintained steady sales, underscoring demand for no-charge electrified options.
  • BEV leaders: Tesla Model Y, Proton E.mas 7, and BYD Atto 3 dominated BEV registrations, with these top five models contributing 62% of total BEV sales in November 2025.
  • Driving factors: Malaysia’s 4.7% GDP growth in the first three quarters of 2025, a 2.75% overnight policy rate (OPR) cut, and a stable job market (2.9% unemployment, an 11-year low) supported overall vehicle demand, including xEVs.

2026 Outlook

The 2025 results hint at a potential turning point. With CBU BEV tax exemptions expired, only locally assembled (CKD) BEVs qualify for incentives – a policy that may slow BEV growth in 2026. Meanwhile, more brands are launching HEV, PHEV, and REEV models, which could reinforce HEV’s position or shift the market toward plug-in hybrids.

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