Auto sector to see slower sales in December this year
KUALA LUMPUR: The automotive sector is expected by analysts to experience slower sales in December 2018, due to a short-working month and tepid purchasing power.
According to the research arm of Kenanga Investment Bank Bhd (Ken an ga Research ), sales volume for December 2018 is expected to be slower, due to short-working days from Christmas festive season.
“We also expect consumers to hold back purchases in anticipation of new launches in the first quarter of current year 2019 (1QCY19),” the research arm said.
“Interesting new launches in 1QCY19 include the all-new Toyota Vios, all-new Perodua SUV as well as the first batch delivery of the all-new Proton X70 (launched on December 12, 2018).”
Affin Hwang Investment Bank Bhd (AffinHwang Capital) noted that Proton’s November 2018 sales volume was flat year on year (y-o-y) at an increase of only 0.2 per cent, but contracted by 5.4 per cent month on month (m-o-m) to 4,800 units, limited by a supply constraint occurred in November 2018.
“With over 10,000 bookings for the all-new Proton X70 launched on December 12, 2018, coupled by the zero Sales and Service Tax (SST) pricing policy and year end promotions, we think Proton sales volume will likely improve in the coming months,” the research firm opined.
However, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) noted that while bookings were pretty strong at over 10,000 (versus a monthly target of 3,000 to 4,000 per month) just a month after pre-launch bookings were opened in September, there has not been much development reported since then.
Looking ahead, MIDF Research projected that the X70 is likely to take share off the Honda HRV mainly and to a certain extent, the Mazda CX3.
“The non-national C-segment sedan is also likely to be impacted – Honda Civic commands a large share here,” it said.