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Car News from Malaysia

Two national carmakers that take two thirds of the market, an excise system that keeps assembly onshore, and a hand-build industry almost nobody covers.

2 articles · 2 brands

This page collects news about the Malaysian car industry: model launches, national-brand strategy, assembly and ownership. Malaysia registered about 820,000 new vehicles in 2025, a fourth consecutive record, and the shape of that market is unusual for the region. Two national brands take 62.3% of it: Proton, founded in 1983 with Mitsubishi engineering and now 49.9% owned by Geely, and Perodua, founded in 1993 and built around Daihatsu component designs, which alone sold 359,904 cars in 2025. In most countries a domestic champion holds a share like that only behind a closed border; Malaysia’s is held in a market where every major foreign brand competes.

What keeps them there is tax. Excise duty on a fully imported car is far heavier than on one assembled locally from kits, so a brand that wants volume in Malaysia builds it there. Honda, Toyota, Mazda, Nissan, Mercedes-Benz, BMW and a growing list of Chinese makers all run Malaysian assembly, much of it through contract assemblers rather than their own plants. The same duty structure is why electric cars arrived on a separate track: fully imported EVs were given a duty exemption to seed the market at all.

At the opposite end of the scale is Bufori, which has hand-built composite-bodied cars in Kepong, Kuala Lumpur since 1998 and makes its own bodies, wiring and control electronics. Its CS8 grand tourer takes over 9,000 man-hours per car. Nothing about it is representative of the industry around it, which is most of why it is worth knowing about.

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Frequently asked questions
Which car brands are Malaysian?
Proton and Perodua are the two national makes, founded in 1983 and 1993 as state-backed projects. Between them they took 62.3% of all vehicles sold in Malaysia in 2025. Bufori, which hand-builds composite-bodied cars in Kuala Lumpur, is the third Malaysian marque and operates at a completely different scale.
What is the best-selling car brand in Malaysia?
Perodua, and not narrowly: it sold 359,904 vehicles in 2025 for roughly 47.5% of the market. Proton was second on 151,561. The Perodua Bezza and Myvi and the Proton Saga trade the individual model rankings between them.
Why are cars assembled in Malaysia rather than imported?
Excise duty falls much more heavily on fully imported cars than on ones assembled locally from kits, so almost every foreign brand with real volume in Malaysia puts a CKD line in the country rather than shipping finished cars in. That is why Honda, Toyota, Mazda, Mercedes-Benz, BMW and several Chinese makers all have Malaysian assembly.
Who owns Proton and Perodua?
Proton is 50.1% owned by Malaysian conglomerate DRB-HICOM and 49.9% by China's Geely, which bought in during 2017. Perodua's largest shareholder is UMW Holdings on 38%, with MBM Resources on 20% and Daihatsu holding 25% across two entities, which is how Toyota sits indirectly behind Malaysia's biggest-selling brand.
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