Malaysia’s EV Market Surges 85% in First Half of 2026, Led by Proton
Malaysia’s EV Market Surges 85% in First Half of 2026, Led by Proton
Malaysia’s electric vehicle (EV) market continued its rapid expansion in the first six months of 2026, recording strong growth despite the expiry of the import duty exemption for fully imported (CBU) EVs at the end of 2025.
According to Road Transport Department (JPJ) registration data, 31,738 battery-electric vehicles (BEVs) were registered between January and June 2026, representing an 85.1% increase from 17,143 units recorded during the same period last year. The results suggest that consumer demand has remained resilient even after the tax incentive ended on December 31, 2025.
Every month in the first half of the year outperformed its corresponding month in 2025. January recorded the strongest start with 6,239 registrations, up 269% year-on-year, supported by registrations carried over from the record-breaking December 2025 as buyers rushed to take advantage of the expiring incentive.
Although registrations eased to 3,635 units in February, making it the slowest month of the first half, the figure still represented a 68% increase compared to February last year. Growth moderated further in May with a 21.3% year-on-year rise, before rebounding strongly in June with 6,215 registrations, an 89.9% increase and the highest monthly total since January.
The continued growth has also strengthened EVs' presence in Malaysia's overall automotive market. During the first half of 2026, fully electric vehicles accounted for 7.8% of all new vehicle registrations, compared with 4.3% a year earlier. This means that approximately one out of every 13 new vehicles registered in Malaysia is now fully electric, compared with one in every 23 during the same period in 2025.
A major contributor to the market's growth has been Proton, which emerged as the country's leading EV brand during the period. The automaker registered 13,530 EVs in the first half of 2026, a remarkable 238% increase from 4,003 units a year earlier. The expansion was supported by the addition of the e.MAS 5, alongside the existing e.MAS 7, allowing Proton to contribute nearly two-thirds of the market's total year-on-year growth.
Several newer brands also played an important role in expanding Malaysia's EV landscape. iCaur entered the market with 2,573 registrations, while TQ Wuling recorded 461 units in its debut period. Zeekr nearly quadrupled its sales to 2,086 units, Leapmotor climbed from 87 to 956 units, and MG tripled its registrations to 839 units.
Meanwhile, BYD, which led the EV market last year, registered 5,675 units, reflecting a modest 5% increase but falling behind Proton by a significant margin. Tesla recorded 1,962 registrations, down 18% year-on-year despite a stronger performance at the end of June, while BMW experienced a sharper decline of 58%, with 376 EVs registered during the six-month period.
Looking ahead, maintaining the same pace of growth may prove more challenging. By the end of June, Malaysia had already achieved around 71% of its full-year 2025 EV registrations, which stood at 44,813 units. If second-half registrations match the 27,670 units recorded during the latter half of last year, total EV registrations for 2026 would approach 59,000 units, representing roughly one-third growth over 2025.
However, the second half of 2025 benefited from a surge in purchases before the expiry of the CBU EV import duty exemption. Without a similar incentive deadline this year, sustaining the same level of momentum may be more difficult, although the first-half performance indicates that Malaysia's EV market continues to gain strength as adoption becomes increasingly mainstream.
Malaysia