Proton vs Perodua: and the winner is… the Malaysian driver

For over a decade, Malaysia's national car race was dominated by Perodua, who routinely outpaced Proton, with the latter seeing only a modest sales increase. However, a shift appears to be occurring in 2026. Proton registered 98,010 new vehicles in the first half, a 40.5% increase and its best first half since 2002. Perodua still leads in sales with 158,295 units, but its sales dipped 4.7%.

For the first time in a decade, the two national brands are neck and neck, with Proton holding a slight edge. Together, they command 67% of the Malaysian market. The contest between Proton and Perodua is more than just a battle for the Malaysian market; it is a proxy war between Japanese and Chinese car-making, with Malaysian consumers as the prize.

The turn of events began with Geely's stake in Proton in 2017, which led to remarkable improvements in Proton's sales and market share. Proton focused on electric vehicles, with the Proton e.MAS 7 becoming Malaysia's best-selling EV in 2025. Perodua responded by launching the QV-E, its first homegrown EV, developed with local engineers.

The competition is forcing both companies to innovate and improve, leading to better cars at better prices for Malaysian consumers. If Proton continues its growth, by 2027, a Chinese-engineered car could become Malaysia's favorite, marking a significant shift in the car market.