Auto sector’s Sept 2019 sales flattish on a monthly basis
KUALA LUMPUR: The automotive sector’s September 2019 sales are expected to be weak or fla ish on a monthon-month (m-o-m) basis but analysts expect sales to be be er than last year.
According to the research arm of Kenanga Investment Bank Bhd (Kenanga Research), sales volume for September 2019 is expected to be weaker compared to August 2019 from the spate of public holidays (Awal Muharram, Agong’s Birthday, and Malaysia Day), but stronger year on year (yo-y) due to the tepid demand post tax-holiday last year.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) also believed sales volume will rebound for September 2019 when compared to September 2018.
“We expect a year-onyear rebound in September 2019 against a low base last year given a lull in demand immediately a er the tax holiday period,” MIDF Research said.
“However on a month-onmonth basis, we expect total industry volume (TIV) to remain fla ish.
“Nonetheless, year-to-date TIV of 398,335 units is in-line accounting for 66 per cent of our full year forecast of 599,000.”
Meanwhile, Kenanga Research maintained its 2019 TIV target at 600,000 units, in line with the Malaysian Automotive Association’s (MAA) target.
“We believe the absence of sales-boosting event, such as
We expect a year-on-year rebound in September 2019 against a low base last year given a lull in demand immediately a er the tax holiday period.
MIDF Research
the one-off 2018 tax holiday, will be offset by exciting new launches in 2019 and we have also factored in possible delays in new car launches given the backlog of pricing approvals from the authorities (three to five months), and tepid purchasing power,” Kenanga Research said.
“Overall, car sales will be supported by the higher delivery of new models, including the all-new Perodua ARUZ (entry-level SUV segment), Honda HR-V faceli (includes Hybrid), all-new Toyota Vios, all-new Toyota Yaris, all-new Proton
X70, face-li ed Proton Persona, Iriz, and Saga (X70 unique features), and faceli ed Nissan X-Trail.”
On another note, Kenanga Research highlighted that the Ministry of International and Industry (MITI) has decided to increase the frequency of the monthly meetings held by the Automotive Business Development Commi ee (ABDC), chaired by MITI, from once to twice a month to speed up the vehicles pricing approval.
The research arm further highlighted that MITI has established a trade and advisory council (TIAC), which will discuss issues on subjects ranging from foreign direct investment (FDI) and domestic direct investment (DDI) to the National Automotive Policy (NAP) in its upcoming meetings (with a minimum of four meetings per year).