JANUARY'S TIV RISE DUE TO HIGHER DELIVERY OF PASSENGER, COMMERCIAL VEHICLES -- CIMB SECURITIES

KUALA LUMPUR, Feb 23 (Bernama) -- Malaysia’s automotive sector total industry volume (TIV) rose 28.7 per cent year-on-year (y-o-y) to 64,298 units in January 2026, driven by higher deliveries of passenger and commercial vehicle segments, CIMB Securities Sdn Bhd said.

In a note today, the investment bank said the Malaysian Automotive Association (MAA) attributed the stronger y-o-y performance to multiple launches at the end of 2025.

“It was also due to a low-base effect stemming from a shorter 19-day working month due to the Chinese New Year (CNY) holidays falling at the end of January 2025.

“On a month-on-month (m-o-m) basis, January 2026 TIV declined 29.1 per cent, largely due to the high base in December 2025, which coincided with year-end deliveries and the expiry of the completely built-up (CBU) electric vehicle (EV) tax exemption,” it said.

CIMB Securities added that the total production volume increased by 5.9 per cent y-o-y to 60,866 units in January 2026.

However, MAA expects February 2026 sales to remain subdued, given an even shorter 17-working-day operating month following the CNY holidays.

It noted that the national brands’ market share expanded 5.4 percentage points (pps) y-o-y to 71.4 per cent in January 2026, mainly driven by robust sales volume at Proton Holdings Bhd, which more than doubled to 19,750 units following the successful launch of the 2026 Proton Saga.

Meanwhile, market leader Perusahaan Otomobil Kedua Sdn Bhd recorded 12.4 per cent y-o-y volume growth in January 2026, supported by resilient demand for Bezza, Myvi, and recently launched Traz.

CIMB Securities is maintaining its 2026 TIV forecast of 800,000 units (-2.5 per cent y-o-y), slightly ahead of MAA’s 790,000 projection.

“Our forecast is premised on clearer policy direction following the implementation of the BUDI95 petrol subsidy programme and confirmation that the open market value revision will not trigger immediate vehicle price increases.

“That said, we expect demand to normalise after the front-loading of CBU EV purchases, alongside lingering inflationary pressures and higher living costs,” it said.

Nevertheless, the investment bank expects national EV penetration to rise in 2026, supported by the launch of Proton e.MAS 5 and continued completely knocked-down EV tax incentives.

-- BERNAMA