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(Kuala Lumpur, Dec 30) As Proton and Perodua roll out their respective electric vehicles, Malaysia’s two national carmakers are set for a fresh round of sales rivalry next year.

A CIMB Securities analyst noted that Proton launched its new EV, the e.MAS 5, in November, while Perodua introduced the QV-E in December. With both brands expanding their BEV line-ups, the market share contribution of locally branded battery electric vehicles (BEVs) is expected to rise further in 2026.

In the first nine months of 2025, BEVs accounted for 4.1% of Malaysia’s total new-vehicle sales, up from 2.4% in 2024.

Total industry volume seen easing in 2026

Despite improving EV penetration, the analyst expects Malaysia’s total industry volume (TIV) to decline 2% year-on-year in 2026 to 774,000 units, compared with an estimated 790,000 units in 2025, citing softer consumer sentiment and inflationary pressure.

From January 2026, the tax exemption for fully imported (CBU) EVs is set to expire, which could lift average prices for imported models. Other market-moving factors include intensifying competition from Chinese automakers and a potential government review of the open market value (OMV) calculation.

“Even with these headwinds, we expect demand for Proton and Perodua to remain resilient, supported by first-time buyers and relatively steady market needs, alongside continued RON95 fuel subsidies under the BUDI95 programme,” the analyst said.

Competition intensifies; sector rating stays Neutral

The analyst added that Chinese brands are likely to keep expanding their market share through aggressive pricing, potentially limiting growth for Japanese marques.

Meanwhile, the government’s six-month delay in revising the OMV framework provides near-term breathing room—particularly for automakers with a higher share of locally assembled (CKD) models—benefiting Japanese and European brands such as Toyota, Honda, Mazda, BMW and Mercedes-Benz.

Given weaker growth visibility and intensifying competition, CIMB Securities maintained a “Neutral” rating on the automotive sector.