Malaysia: Perodua and Proton Strengthen Collaboration with Foreign Automakers

GlobalData Sales Forecast: Malaysian market matures at 800k units, shift to replacement demand

2026/11/02

Summary
The Malaysian market expands to 800,000 units, entering a new growth phase
Perodua and Proton: Competition intensifies, centered on partnerships with foreign companies
Perodua: Leveraging Daihatsu partnership, implementing product strategy that captures market needs
Proton: Strategy for renewed growth through its partnership with Geely, expanding SUV and EV lineups
Signs of progress in electrification: Proton and BYD lead the way in the EV market
National strategy for developing EV industry: Semiconductor industry and EV supply chain converging
GlobalData Sales Forecast: Malaysia’s market matures at around 800,000 units, with two local automakers launching BEVs

Summary

The Malaysian automotive market is structured such that two domestic companies, Perodua (Perusahaan Otomobil Kedua Sdn. Bhd.) and Proton (Proton Holdings Berhad), account for the majority of the market. While Perodua is maintaining its competitive edge in the compact car market through its collaboration with Daihatsu Motor Co., Ltd. (Daihatsu), Proton is expanding its sales by strengthening the appeal of its SUVs and EVs, backed by its partnership with Geely. In recent years, the competitive landscape has been changing against the backdrop of the entry of Chinese OEMs (automakers) and the expansion of the EV market, and competition between the two companies has intensified as their product portfolios have increasingly overlapped. The government is also promoting the development of the EV industry as a national strategy, and investment in local production and electrification is accelerating.

In the EV market, Proton is leading the way with its “e.MAS” EV brand, while Perodua also plans to launch its first domestically produced EV, the “QV-E.” In addition, Chinese OEMs are planning to expand production and sales through CKD operations in collaboration with local partners, and are thereby increasing their market presence. Going forward, competition is expected to intensify not only between Proton (the Geely camp) and Perodua (the Daihatsu-Toyota camp) but also to include Chinese OEMs.

According to GlobalData forecasts, Malaysia’s light vehicle market has reached maturity at a level of 800,000 units, with demand expected to shift toward vehicle replacements. Perodua is projected to maintain a volume of around 300,000 units, while Proton is expected to hold at approximately 200,000 units. The gap between the two companies is narrowing, and competition between these domestic OEMs is expected to intensify, driven by their respective initiatives in the New Energy Vehicle (NEV) space.

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