Overall car sales to slow down in 1Q18
KUALA LUMPUR: Tepid car sales has been projected for the first quarter of current year 2018 (1Q18) due to the absence of sales boosting year-end promotional activities.
“We expect overall car sales to slow down in 1QCY18 with the absence of sales boosting year-end promotional activity and further dragged down by the slower sales from the car-makers that did not launch any new models during the quarter,” the research arm of Kenanga Investment Bank Bhd (Kenanga Research) said.
Nonetheless, specifically, Kenanga Research expected Bermaz Auto Bhd (Bermaz) sales to gain traction with the higher delivery of its flagship model, the all-new Mazda CX-5 from the local market as well as from the commencement of the all-new Mazda CX-5 export to Thailand, Indonesia, Philippines and Cambodia.
Subsequently, the research arm expected MBM Resources Bhd (with its 22.58 per cent-owned effective stake) and UMW Holdings Bhd (with its 38 per cent-owned interest) to benefit from the strong reception of the all-new Perodua MyVi.
“Note that, currently, the all-new Perodua Myvi bookings have hit 68,000, with 28,000 units delivered, and we understand that the waiting list is up to three months due to higher-than-expected take-up rate for its higher-end variants,” Kenanga Research said.
“On the other hand, DRB-Hicom Bhd is waiting for the all-new Proton/Geely Boyue, expected to be launched in the second half of 2018first half of 2019 (2H18-1H19).”
However, the research arm expected Tan Chong Motor Holdings Bhd to continue its weak performance given the lack of new model launches while Sime Darby Bhd is still banking on its world share of BMW vehicles, currently at 2.5 per cent of total BMW global sales and maintain its position as the world second largest BMW dealer.
On forecasts, Kenanga Research maintained its total industry volume (TIV) estimates at 590,000 units (up two per cent) as the research arm reiterated 2018 theme of value-for-money sales and segmental targeted sales.
“Value-for-money sales will be focusing on the affordable variants led by Perodua (Axia, Myvi, Bezza, and Alza), followed by Honda (with its entry-level Hybrid segment, Jazz and City Sport Hybrid, as well as entrylevel SUV segment, the BR-V),” the research arm said.
“However, for the third place, there will be a competition between Proton (Saga, Persona and Exora) and Toyota (Vios, Hilux and Innova) with only a one per cent difference in market share; whereas, for segmental targeted sales, 2018 will be the year of SUV segment led by the most anticipated introduction of Proton-Geely Boyue in 2H18-1H19, all-new Perodua SUV (D38L), allnew Toyota C-HR, 2018 Toyota Rush, all-new Mazda CX-8 and supported by the existing models of Mazda (all-new CX-5 and CX-3) ,Honda (BR-V, HR-V and CR-V) and Nissan (X-Gear and X-Trail).”
Kenanga Research noted that the all-new third generation Perodua Myvi (priced at RM44,300 to RM55,300) is viewed as the most affordable car variants with advanced technologies (Advanced Safety Assist (ASA) and pre-built SmartTag toll reader) rivalling the non-national brands at double the price.