The Malaysian Automotive Association (MAA) raised its full-year total industry volume (TIV) forecast to 800,000 units from 790,000 units, citing sustained demand for SUVs and electrified vehicles, New Strait Times reported Wednesday.

The association also attributed the growth to improved policy certainty following the extension of the New Customised Incentive Mechanism (NCIM) timeline. MAA president Mohd Shamsor Mohd Zain said the extension has given automakers greater confidence to plan production, investment and sales.

The industry sold 385,353 vehicles in the first six months of 2026, up 3% from 373,636 units a year earlier. MAA's revised forecast comprises 744,000 passenger vehicles and 56,000 commercial vehicles, though it remains below the record 820,752-unit TIV recorded in 2025, according to the report.

Total vehicle production rose 1.2% to 356,946 units during the first half. Meanwhile, commercial vehicle sales declined 11%, mainly due to weaker demand for pick-up trucks after the removal of diesel subsidies for privately registered vehicles, the news outlet said.

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