Wheels

The flagship EV redefines premium through calm design, everyday wellbeing and human-centred safety rather than performance bravado 

by AKMAR ANNUAR 

THERE are car launches that feel like a checklist, and then there are launches that leave this writer oddly still, as if the room has been tuned to listen. 

This writer used to think Volvo was a brand meant for “the oldies”, but the ES90 experience quietly changed her mind. 

The Volvo ES90 debut in Kuala Lumpur (KL) framed the brand’s first fully electric sedan as a flagship that is locally assembled in Shah Alam, Selangor, and meant to make premium mobility feel less performative and more deliberate. 

Before the specifications arrived, the organisers played a “Selamat” safety video that landed with unusual softness for an automotive room, and this writer was moved by how the message was told through ordinary road moments rather than fear. 

That tone was reinforced by a brief but touching speech from Volvo Car Malaysia sales and marketing director Patricia Yaw, who let the idea of “Selamat” land as a shared responsibility rather than a slogan. 

In that instant, this writer was reminded that Volvo’s reputation is not built on speed or swagger, but on the unglamorous work of trying to keep people safe. 

The panoramic roof uses electrochromic glass with up to 99.9% UV protection

Designed for Life in Balance 

The ES90 itself entered the spotlight as a sleek contradiction: A sedan that does not want to be boxed into the traditional saloon label yet refuses to chase SUV bulk for attention. 

Volvo describes it as “Designed for Life in Balance”, and it is a phrase that can sound like marketing until you are standing next to the car and noticing how its proportions trade drama for confidence. 

From the front, the familiar Thor’s Hammer headlight identity reads cleaner here, while the rear uses C-shaped LED lamps and lighting integrated into the rear window for a distinct welcome-and-farewell sequence. 

Viewed in profile, Volvo said a slightly raised ride height gives a more commanding view of the road, while the flowing roofline and aerodynamics support overall efficiency and electric range. 

Practicality remains part of the design story, with a large tailgate hatch and a boot offering up to 424 litres, expandable to 904 litres with the 40/20/40 rear seats folded, plus a 27-litre front compartment for charging cables. 

Volvo Car Malaysia and Thailand MD Chris Wailes framed the long view when he said: “For 60 years, Volvo has been part of the Malaysian journey. Today, we turn a new page with the launch of the ES90. 

“This is the car for the driver who seeks balance — blending the executive presence of a premium sedan with the sustainability and performance of our latest electric technology.” 

Those lines set the mood for an experience that felt less like a product pitch and more like an invitation to rethink what “premium” should mean in an electric vehicle (EV) age. 

This writer kept returning to how the ES90’s surfaces are calm but not plain, because the design relies on confidence rather than clutter. 

The launch model arrives in four colours — vapour grey, crystal white, denim blue and onyx black — which suit the car’s understated character. 

Inside, the cabin feels like a modern Scandinavian living room, with a long wheelbase that translates into generous second-row legroom. 

Up close, the ES90 Ultra is paired with a charcoal interior and ventilated Charcoal Nordico upholstery with birch wood decor, and it looks intentionally warm rather than aggressively “sporty”. 

The panoramic roof uses electrochromic glass with up to 99.9% UV protection, letting passengers adjust transparency to reduce glare and increase privacy, which matters in Malaysia’s heat and midday brightness. 

The screens are central to ES90, with 14.5-inch centre touchscreen, 9-inch driver display and head-up display

Daily Wellbeing 

This writer liked that the comfort story is built around reducing fatigue, not showing off, even when the feature list is long. 

Volvo’s four-zone climate control and air purifier are framed as daily wellbeing features, including the claim of blocking up to 95% of 2.5 particulate matters (PM) and removing 99.9% of grass, tree and pollen allergens. 

The ES90 is engineered for ultra-low cabin noise levels, which makes it one of Volvo’s quietest cabins and that quiet becomes the stage for sound rather than another source of stress. 

Volvo’s Bowers & Wilkins system includes 25 speakers delivering 1,610 watts, with Dolby Atmos and an Abbey Road Studios mode that recreates the acoustics of the legendary London recording space. 

Even without a long drive, this writer found that the cabin’s silence and audio focus made the ES90 feel like a buffer against the day, not just another screen-filled machine. 

That said, the screens are central, with a 14.5-inch centre touchscreen, a nine-inch driver display and a head-up display, and Volvo ties the infotainment to Google built-in for maps, assistant functions and apps. 

Under the floor, the ES90 sits on Volvo’s SPA2 platform with an 800-volt architecture, and this is where the launch moved from mood to usability. 

Volvo said the ES90 can charge from 10% to 80% in about 22 minutes on a 350 kilowatts (kW) DC fast charger, reducing “waiting time” into something closer to a short coffee stop. 

The WLTP (Worldwide Harmonised Light Vehicle Test Procedure) range is up to 651km, positioned as enough for confident interstate travel without range anxiety. 

In the Malaysian brochure, the ES90 Ultra is listed with a 92 kilowatt-hour (kWh) battery (88kWh usable), a single-motor rear-wheel-drive setup producing 245kW and 480Nm, and a 0kph-100kph time of 6.6 seconds, which suits the car’s executive temperament. 

From the front, the familiar Thor’s Hammer headlight identity reads cleaner for ES90

Making Safety Feel Personal 

Then there is Volvo’s oldest pitch, now delivered through computing power rather than just metal: Safety. 

Volvo said the ES90 is powered by the Nvidia Drive AGX Orin platform, processing 

data from cameras and radars to create a 360° safety shield around the car. 

The car includes a sensor suite of five radars, seven cameras and twelve ultrasonic sensors, built to help the car “see” beyond human capability and avoid hazards earlier. 

Driver-focused support includes a driver understanding system, while a door-opening alert is designed to warn occupants if cyclists or pedestrians are passing before doors swing open. 

For Malaysia, Volvo also emphasises recycled and responsibly sourced materials, including recycled aluminium and steel content and FSC (Forest Stewardship Council)-certified interior wood panels as part of lower-emission production ambitions. 

The price is where aspiration meets reality, and the ES90 launches in one variant — the ES90 Ultra — priced from RM339,888 in Peninsular Malaysia, with a 2% early-bird incentive for the first 100 units booked by March 31, 2026. 

Volvo backs that flagship positioning with a five-year unlimited mileage vehicle warranty and an eight-year or 160,000km battery warranty. 

What stayed with this writer was not the charging chart or the option list, but the way the event made safety feel personal again, through a video that centred everyday lives and a short speech that trusted the room to understand what “Selamat” really means. 

The ES90’s quiet cabin, thoughtful materials and heavy emphasis on intelligent safety systems reinforce that message, as if Volvo is betting that calm will be the next premium currency. 

For this writer, that restraint is what makes the ES90 feel future-facing, without losing Volvo’s human warmth. 

At the end of the launch, this writer walked away thinking the ES90’s most memorable feature was not the range figure, but the way it made stillness feel intentional, and care felt like a design choice rather than an afterthought.

• This article first appeared in The Malaysian Reserve weekly print edition

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AMERICAN car-maker Ford Motor Co. and China’s Xiaomi Corp. had been in discussions to form a joint venture to manufacture electric vehicles in the US, the Financial Times reported. 

The talks were preliminary, the paper said, citing people familiar with the matter. It also reported that Ford has discussed collaboration with other Chinese car-makers including BYD Co. 

Ford and Xiaomi denied to the FT that they were in such talks, while BYD declined to comment to the paper. 

The reported partnership talks come amid rising trade tensions between the US and China and rivalry in key sectors such as manufacturing and shipping. While Chinese EV makers are increasingly seeking to diversify overseas due to intensifying domestic competition and overcapacity, expanding into the American market would face mounting geopolitical headwinds. 

Chinese EV makers have been steering clear of the US market due to tariffs and political reasons. But they are expanding rapidly elsewhere in the world. Chinese automakers gained record market share in Europe in December, building nearly one in 10 passenger cars sold in the region. 

Canada also reached an agreement with China last month to lower some trade barriers and rebuild ties, including allowing 49,000 Chinese EVs into its market at a tariff rate of about 6%, removing a 100% surtax. Canada had put the large tariff on Chinese EVs in 2024 to align with US policy. 

President Donald Trump has threatened Canada with 100% tariffs on all its exports to the US if it makes the trade deal with China. –BLOOMBERG

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TESLA Inc. plans $20 billion of spending this year to streamline its electric-vehicle lineup and shift resources toward robotics and AI, part of a sweeping set of changes pushing the company further from its roots as an automobile manufacturer.

The capital expenditure plans laid out Wednesday – roughly twice as much as Wall Street was expecting – will support production expansion at multiple factories, scaling up the nascent robotaxi business and building out AI infrastructure. Tesla also revealed plans to discontinue the Model S and X vehicles and devote that plant capacity to building Optimus humanoid robots.

“We’re making very, very big investments,” Chief Executive Officer Elon Musk said on a conference call after Tesla released fourth-quarter results.

The dramatic moves also include a new agreement to invest $2 billion in Musk’s xAI startup and discussions to potentially build a semiconductor manufacturing facility. They underscore Tesla’s ambitions to reorient around artificial intelligence, driverless technology and robots at the expense of its car-selling business, which has endured two years of decline and faces more challenges in 2026. 

Investors have broadly supported the reinvention, even as many of the new business lines remain far-off and uncertain prospects. Neither the EV sales slump nor Tesla’s earnings beat received much attention on Wednesday’s call.

“This quarter officially marks the fundamental shift from EV company to an all-in bet on robotaxi, energy and Optimus,” said Andrew Rocco, an analyst with Zacks Investment Research. “It looks like they’re almost ready to tear off the Band-Aid on the EV business and go full in on autonomy.”

The shares climbed 1.2% at 7:03 p.m. in extended trading in New York. The stock rallied to new highs last year despite underperforming the broader market.

AI Agreement

Tesla reached an agreement this month to acquire preferred shares as part of xAI’s latest funding round, according to the company’s fourth-quarter earnings statement. The companies also entered into a “framework agreement” to strengthen their relationship and “enhance Tesla’s ability to develop and deploy AI products and services into the physical world.”

The investment highlights the deepening ties between Musk’s business interests and reinforces the growing focus on AI. 

The xAI agreement will likely be welcomed by many investors and overshadow the earnings results, said Matt Maley, chief market strategist for Miller Tabak + Co.

“If Tesla is going to do as well as the bulls are thinking, it’s going to be with the robotaxi and robotics,” Maley said. “So, this investment is exactly what the bulls wanted to hear.”

While Musk has previously expressed support for Tesla to invest in xAI, the decision comes as a surprise after an unsuccessful shareholder vote at the carmaker’s November annual meeting seemed to cloud the prospects. More of Tesla’s shareholders voted for a nonbinding measure encouraging such an investment, but a heavy number of abstentions meant the measure didn’t pass. Still, Tesla said then that it would continue to explore the possibility.

The two companies, both of which are led by Musk, already work together. Tesla sells its Megapack energy storage system to xAI and xAI’s Grok chatbot is integrated into some Tesla vehicles. Bloomberg also reported that xAI told investors that its aims to build AI will eventually power humanoid robots such as Optimus.

Quarterly Profit

Adjusted earnings per share were 50 cents in the quarter, Tesla said Wednesday, five cents higher than the average of analyst estimates. The results snap a string of four quarters in which profit was weaker than expected. 

Tesla is navigating lower EV demand and rising competition. Musk has previously warned the company faces a rough patch while it works on these new priority areas. 

As part of the overhaul, Tesla is axing the Model S, a luxury sedan that costs about $95,000 and the Model X, an SUV with a pricetag of nearly $100,000. The two are low-volume vehicles compared to Tesla’s more-affordable 3 and Y models. 

The profit beat helps offset disappointment stemming from a steady decline in vehicle sales: Tesla earlier this month reported a 9% decline in 2025 deliveries from the previous year. That slump sharpened in the fourth quarter, when deliveries dropped 16% from a year earlier.  

Last year was marked by a crowded EV market, the end of US regulator credits and a backlash against Musk’s polarizing politics and his role in the Trump administration. 

Sales from regulatory credits fell 22% in the fourth quarter from a year earlier, showing how a lucrative revenue stream is drying up. The company receives the payments from competitors who exceed federal fuel economy standards. That income has dropped after the Trump administration eliminated penalties for automakers that failed to meet the standards.

Due to the lower regulatory credit revenue and a drop in vehicle deliveries, Tesla’s 2025 revenue declined for the first time. 

Separately, the company reported 1.1 million active subscribers for its Full Self Driving driver assistance software — up nearly 40% from a year earlier. The software, which currently is not considered autonomous and requires constant human supervision, is becoming subscription-only starting after Feb. 14.

Tesla on Wednesday said it aims to expand its budding robotaxi business to Dallas, Houston, Phoenix, Miami, Orlando, Tampa and Las Vegas in the first half of this year. The business has been slowly expanding but has also missed a number of predicted timelines. 

Tesla launched its automated rideshare operations in Austin in June. This month, Tesla started rolling out “a few” robotaxis without human driver supervision in Austin. It plans to scale this to its entire Austin fleet over time. The vehicles have previously operated with human safety supervisors in the front seats. The milestone has been long-anticipated, and Musk promised it would come late last year.

The company also operates a rideshare service on the same app in the San Francisco Bay Area that is not considered autonomous and has drivers in the front seat. It also has permits to test the service in Nevada and Arizona. –BLOOMBERG

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SHAH ALAM — National carmaker Proton Holdings Bhd is targeting sales of up to 200,000 units in 2026, driven by its comprehensive future technology roadmap.

Its chief executive officer Dr Li Chunrong said the roadmap includes the continued development of its three platforms namely the Global Modular Architecture (GMA), Advanced Modular Architecture (AMA) and the X-series.

“Under this roadmap, Proton also remains committed to develop four technology pathways aimed at creating leading technologies by 2035, focusing on internal combustion engine (ICE) vehicles, hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV).

“Through these technology roadmaps, I believe we can achieve the target of 200,000 units,” he said in his speech at Proton’s Chinese New Year dinner here today.

Li also said that in 2026, Proton aims to make Proton Saga the number one car model in Malaysia, while its sub-EV brand e.Mas is targeted to be the country’s leading EV brand.

“Additionally, we hope the upcoming Proton e.Mas 7 PHEV, which will be launched in February 2026, will become the number one PHEV in Malaysia,” he added.

To recap, Proton sold 157,976 units in 2025, its highest sales achievement in 15 years, representing a 3.3 per cent year-on-year increase.

The company also sold 74,013 units of Proton Saga in the same year with an average of 6,168 units per month, highest in 14 years.

On exports, Li said Proton is targeting exports of up to 8,200 units to 32 countries in 2026.

“By 2030, we aim to increase our export volume to 100,000 units,” he said.

In 2025, Proton exported up to 6,000 units to 18 countries, marking its highest export performance in 12 years. — BERNAMA

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SOME 4.07 million vehicles in Malaysia have been identified as no longer “active” on the roads after failing to renew their Motor Vehicle Licence (LKM) for three years or more.

Transport Minister Anthony Loke said the figure represents 20.7% of the 19.69 million vehicles registered in the country as at Dec 31, 2025, according to Utusan Malaysia.

“If such vehicles are not managed systematically, they could pose safety risks, cause environmental pollution and create disturbances to local communities,” he said at the launch of the Matching Grant Programme for the Replacement of Old Vehicles.

Loke said the programme is expected to help reduce the number of ageing vehicles that are no longer safe for road use, thereby lowering accident risks and protecting the lives of road users.

He noted that older vehicles are generally more prone to mechanical failures, lack modern safety features and do not meet current safety standards. Loke described the replacement of ageing vehicles under the programme as a significant, high-impact road safety intervention.

The programme is supported by the Road Transport Department’s (RTD) online vehicle deregistration system, e-DeREG, which allows owners to cancel registrations digitally without having to visit a counter.

He added that the Authorised Automotive Treatment Facility (AATF) mechanism helps prevent misuse of vehicle identities and registration numbers, ensures old vehicles do not illegally return to the roads, manages waste materials and recyclable components safely and supports environmental sustainability and the circular economy.

The programme takes effect from today with an allocation of RM10 million, covering the replacement of about 5,000 old vehicles aged 20 years and above.

Loke said the initiative is specifically for replacing old vehicles with new Proton and Perodua cars only, offering rebates of up to RM4,000.

“If this programme receives a good response from the people, we will ask the Finance Ministry (MOF) to increase the allocation and funds,” he said.

The ministry is positioning the scheme as part of a broader initiative to reduce abandoned vehicles and strengthen road safety nationwide.

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WALL Street is giving off mixed signals about Tesla Inc. Analysts are increasingly skeptical of the electric-vehicle maker’s earnings potential this year, but their expectations for the company’s stock price keep climbing.

“Tesla is truly unique in capital markets,” said Nicholas Colas, co-founder at DataTrek Research. “It is much more like a VC-funded startup than public equity. As long as the vision is bold enough, the valuation levers off that rather than earnings and cash flows.”

Over the past 12 months, the average forecast for Tesla’s 2026 net income has tumbled 56% from $14 billion to $6.1 billion as of Tuesday’s close. Yet, during the same period, analysts have raised their average 12-month price target for Tesla shares to $409.49 from $337.99. The stock closed at $430.90 Tuesday, which is well above Wall Street’s expectations for a year from now.

The dynamic is “very unusual,” Colas said, since higher price targets typically go hand-in-hand with improving earnings estimates, not dimming expectations. The company reports its fourth-quarter and full-year results on Wednesday. A Tesla representative didn’t respond to a request for comment.

Tesla’s stock, which raced to an all-time high in December before retreating some, trades at about 194 times its expected earnings over the next 12 months as of Tuesday’s close. That’s by far the most-expensive valuation among the Magnificent Seven tech giants, which combined trade for around 29 times anticipated earnings. By comparison, its next closest peers in the group are Apple Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc., all of which are priced between 25 and 30 times forward earnings. 

The shares also have the second-highest multiple in the entire S&P 500 Index, trailing only takeover target Warner Bros. Discovery Inc. and well ahead of number three Palantir Technologies Inc. 

“If the stock was trading closer to peers, we might be inclined to suggest the risk/reward is appealing,” HSBC analyst Mike Tyndall wrote in a note to clients earlier this month. However, the other Mag Seven members have “higher margins, generate more cash,” and yet are priced at a significant discount to Tesla, he added.

To get a sense of how much of an outlier the company has become, consider that every member of the Magnificent Seven has seen their price target rise over the past year — but only Tesla’s profit estimates have deteriorated simultaneously.

The amount of hope baked into Tesla’s share price has become a point of controversy among investors. Clearly the stock isn’t moving on the outlook for EV sales. Rather, it’s primarily about Chief Executive Officer Elon Musk’s vision for humanoid robots and driverless cars. While those are certainly promising areas for future growth, they’re also businesses where Tesla has yet to demonstrate real profitability.

Tesla’s long-term potential will be in focus when Musk speaks to Wall Street on Wednesday afternoon following the company’s earnings report. The disparity between its value and performance means the CEO’s guidance is more important than ever. As the company’s fundamentals weaken and car sales drop, analysts want to see how much progress it’s making in the push to create a thriving business around autonomous vehicles and robots. 

“Deliveries barely matter anymore,” Piper Sandler analyst Alexander Potter wrote in a note to clients earlier this month after Tesla’s fourth-quarter vehicle sales disappointed. “Instead, TSLA’s performance in 2026 should be driven by progress in AI and robotics.”

Potter has an overweight rating on Tesla shares and a target price of $500, which implies a gain of about 15% over the next 12 months. But “without new disclosure, we fear investors may refocus on declining near-term estimates,” Potter wrote.

This tension is at the core of the debate over the stock’s inflated valuation. The “generational growth opportunities” in robotics, autonomy and energy storage make Tesla’s price worth paying, according to Canaccord Genuity analyst George Gianarikas. 

In fact, Tesla’s radical shift in strategy also makes it the rare case where anticipated earnings often do deviate sharply from the stock’s price targets, said Jonestrading chief market strategist Michael O’Rourke. 

“Analysts are willing to value the company on the businesses that are not commercial yet,” he said. “In short, they would rather bet on Elon Musk than bet against him.” –BLOOMBERG

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MALTON Bhd has signed a memorandum of understanding (MoU) with Dongguan Benling Vehicle Technology Co Ltd (Benlg) to explore a potential collaboration in the electric vehicle (EV) motorcycle segment in Malaysia.

In a filing with Bursa Malaysia today, Malton said the MoU was entered into on Jan 26, 2026, and sets out the principal terms for both parties to assess the feasibility of establishing Benlg’s presence in the Malaysian EV motorcycle market, with Malton as its local partner.

Benlg is an EV motorcycle manufacturer with 20 years of experience and production facilities in Tianjin, Wuxi and Taizhou in China.

The company also has overseas operations in India, the Philippines, Thailand and Indonesia.

Under the MoU, Benlg and Malton will jointly conduct feasibility and market studies on EV motorcycle demand in Malaysia and the Southeast Asian region.

The collaboration will also involve engagement with Malaysian authorities on the potential establishment of a local assembly plant, identification of suitable factory locations, sourcing of a local distribution partner, and assessment of the project’s capital requirements and equity participation structure.

Malton said that if the project is found to be feasible and mutually beneficial, the parties will enter into definitive agreements to formalise the collaboration.

The MoU is non-binding, except for confidentiality provisions, and will remain in force for a period of nine months from the date of execution, or until definitive agreements are signed, whichever is earlier.

Either party may terminate the MOU with 30 days’ written notice. — TMR

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by AKMAR ANNUAR

ENFORCEMENT against overloaded heavy vehicles remains the government’s priority after thousands of lorries operating beyond legal load limits were detected by the Road Transport Department (JPJ) in the final quarter of last year.

Transport Minister Anthony Loke Siew Fook (picture) said JPJ carried out a nationwide special operation between Oct 14 and Dec 31, 2025, focusing on heavy vehicles found to be exceeding permitted weight thresholds.

“JPJ has taken firm action against heavy vehicles found to be carrying loads beyond the legal limit, as overloading poses serious risks to road safety and infrastructure integrity,” he said in Parliament today.

A total of 3,604 heavy vehicles were booked during the operation, spanning multiple weight categories and degrees of overloading, according to data tabled in Parliament.

For vehicles in the 7.5-tonne and below (decontrolled) category, 1,731 cases were recorded, including 655 vehicles overloaded by between 10% and 35%, 549 vehicles exceeding limits by 35% to 70%, and 527 vehicles carrying loads more than 70% above the allowable level.

In the 7.5-tonne to 32-tonne category, enforcement officers took action against 1,193 vehicles, comprising 916 cases of 10% to 35% overloading, 125 cases between 35% and 50%, and 152 vehicles exceeding limits by more than 50%.

Meanwhile, 680 vehicles above 32 tonnes were found to be overloaded, with 473 cases in the 10% to 25% range, 167 cases between 25% and 50%, and 40 vehicles exceeding limits by more than 50%.

Loke said the figures reflect persistent non-compliance within segments of the logistics and transport sector, with excessive loads affecting vehicle stability, braking performance and road durability.

“Strict enforcement will continue to be carried out to curb overloading, which not only endangers road users but also accelerates damage to national road infrastructure,” he said.

Separately, police statistics showed a decline in fatal accidents involving heavy vehicles in 2025, offering early indications that stronger enforcement may be contributing to improved safety outcomes.

Data from the Royal Malaysia Police showed 232 fatal accidents involving heavy vehicles in 2023, rising to 260 cases in 2024, before falling to 163 cases in 2025. The figures include incidents where heavy vehicles were either the main cause or among the vehicles involved.

The Transport Ministry said enforcement efforts will continue to focus on compliance, deterrence and industry accountability, in line with broader road safety objectives.

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by SHAHRIN AIZAT NOORSHAHRIZAM

MALAYSIA’S automotive industry recorded a second consecutive record year in 2025, with total industry volume (TIV) reaching an all-time high of 820,752 vehicles, emphasising the sector’s resilience amid evolving market conditions.

Data released by the Malaysian Automotive Association (MAA) showed that vehicle sales rose marginally by 0.5% from 816,747 units in 2024, marking the second year in a row that the industry surpassed the 800,000-unit threshold.

MAA president Mohd Shamsor Mohd Zain said the milestone reflected the industry’s ability to adapt and sustain growth despite shifting economic and policy dynamics.

“The performance was supported by resilient consumer demand, favourable financing conditions and the growing acceptance of electrified vehicles, reflecting the industry’s continued strength and transition towards more advanced and sustainable mobility,” he said when presenting the data today.

December 2025 saw the highest monthly TIV on record, with 90,716 units sold, surpassing the previous peak of 81,735 units in December 2024.

The fourth quarter of 2025 also delivered a record-breaking performance, with quarterly TIV climbing to 241,416 units, highlighting sustained buying momentum towards the year-end.

Mohd Shamsor attributed the strong showing to Malaysia’s solid economic performance, noting that gross domestic product (GDP) expanded by 4.7% in the first nine months of the year, driven by robust domestic demand and a recovery in exports.

Favourable financing conditions further supported vehicle sales, following the reduction of the overnight policy rate to 2.75% in July 2025, which improved loan affordability and encouraged purchases.

Passenger vehicles continued to anchor industry demand, particularly sport utility vehicles (SUVs), which recorded a 13% increase in sales to 228,572 units in 2025, compared with 201,565 units a year earlier.

In contrast, the commercial vehicle segment extended its decline, falling 11% in 2025 after a 14% drop in the previous year, largely due to the removal of diesel subsidies in June 2024.

For 2026, the MAA projects a lower TIV of 790,000 vehicles, comprising 730,000 passenger vehicles and 60,000 commercial vehicles.

Mohd Shamsor cautioned that the outlook could be affected by moderating GDP growth of between 4.0% and 4.5%, amid global trade uncertainties, including fluctuating US trade policies and ongoing geopolitical tensions.

He added that inflationary pressures are expected to raise manufacturing, component and operational costs, potentially affecting vehicle pricing, while the expiry of tax incentives for imported electric vehicles (EVs) and possible adjustments to excise duties could further weigh on sales.

Despite these challenges, interest in EVs continues to gain traction, although EV adoption remains at an early stage and requires greater emphasis on local assembly to improve market penetration.

The data showed that national automotive brands increased their combined market share by 0.4 percentage points to 62.3%, equivalent to 511,468 units, although growth moderated to 1.1%.

Non-national brands saw sales decline to 309,258 units, mainly due to weaker commercial vehicle demand, with the segment’s market share easing to 8% from 9% previously.

Total industry production (TIP) fell 5% to 747,780 units in 2025 from 790,347 units in 2024, despite record TIV.

Mohd Shamsor said the decline reflected higher registrations of completely built-up battery EVs (BEVs) ahead of the expiry of related incentives at end-2025, which accelerated BEV demand and registrations.

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KUALA LUMPUR — The Malaysian automotive market maintained its strong momentum in 2025, surpassing the 800,000-unit threshold for the second consecutive year, with total industry volume (TIV) rising to 820,752 units from 816,747 units last year, representing an increase of 0.5 per cent.

Malaysian Automotive Association (MAA) president Mohd Shamsor Mohd Zain said the robust performance was supported by a resilient economy driven by strong domestic demand and a recovery in exports, as gross domestic product (GDP) expanded by 4.7 per cent in the first three quarters of 2025.

He noted that the Overnight Policy Rate (OPR), which was reduced to 2.75 per cent from July 2025, provided a conducive environment for vehicle financing, while a stable socio-political landscape helped underpin business confidence and employment stability.

“The positive employment market also supported the industry, with the unemployment rate reaching an 11-year low of 2.9 per cent,” he said in a press conference today.

Mohd Shamsor said national makes recorded sales of 511,468 units, accounting for a 62.3 per cent market share, compared with 309,284 units for non-national makes, which represented a 37.7 per cent share.

“The combined market share of the two national makes improved by 0.4 per cent to 62.3 per cent or 511,468 units, albeit with a lower growth rate of 1.1 per cent.

“Meanwhile, non-national makes registered a lower sales volume of 309,284 units, representing a 0.6 per cent decline in 2025 compared with a year earlier, mainly due to weaker contribution from the commercial vehicles segment,” he said.

He added that total industry production (TIP) in 2025 declined by 5.4 per cent to 747,780 units from 790,347 units in 2024.

“The decline in production despite record TIV reflects the higher number of completely built-up battery electric vehicles (CBU BEVs) registered in 2025.

“The expiry of CBU BEV incentives on Dec 31, 2025 further accelerated BEV sales and demand,” he said.

Looking ahead, Mohd Shamsor said that while the automotive sector faces several challenges, a number of positive factors could support market resilience in 2026.

“These include continued low unemployment, which supports income stability and consumer confidence, as well as strong demand for affordable and fuel-efficient vehicles, particularly national makes,” he said.

He added that the continued development of the electric vehicle ecosystem would enhance support from foreign EV manufacturers through investments, technology transfer and future growth.

“The introduction of new brands and models is expected to stimulate market interest, while attractive promotional strategies and value-added services will provide customers with better options,” he said.

As for the outlook, Mohd Shamsor said that based on prevailing risks and factors affecting the automotive sector, MAA forecasts TIV for 2026 at 790,000 units, representing a 3.8 per cent decline from 2025. — BERNAMA

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