March Auto TIV jumps 13 per cent m-o-m to 71,000 units

KUCHING: Malaysia’s automotive sector’s total industry volume (TIV) in March has jumped 13 per cent month on month (m-o-m) to 71,052 units thanks to Hari Raya Aidilfitri promotions says analysts at Kenanga Investment Bank Bhd (Kenanga Research).

The marques with the largest growths in March were Honda and Toyota who saw their sales surging by 33 per cent and 27 per cent m-o-m, respectively.

According to Kenanga Research, Honda sales were driven by the City, Civic and allnew HR-V models while Toyota sales were driven by its popular all-new Bios, Yaris, Corolla Cross and Hilux models.

The two marques were also the only marques to record y-oy growth during the month with Honda sales growing by 5 per cent y-o-y while Toyota grew by a higher eight per cent y-o-y.

Nissan also managed to record a robust 20 per cent m-o-m increase in sales but a higher 24 per cent y-o-y fall as the marquee continued to lose out in the allnew vehicles race and continues to depend on its massive rebates to stay in competition.

National marque Perodua also managed to see sales increase by 6 per cent m-o-m thanks to sustained demand for its all-new Perodua Alza, all-new Perodua Axia, Bezza, MyVi and Ativa models. Though, y-o-y its sales fell by 10 per cent due to a high base in the previous year.

Meanwhile, Proton and Mazda did not fare as well during the month as m-o-m, their sales dropped by 6 and 9 per cent while y-o-y, they fell at a steeper 14 and 21 per cent.

Kenanga Research commented that Mazda has observed to be losing some of its market share to newcomer, Chery who has amassed year to date (YTD) sales of 4,511 units, quickly closing in on Mazda’s YTD 4,565 units.

Cumulatively, the TIV for the first three months of 2024 (3M24) came in at 184,994 unit which translated to an 8 per cent year on year (y-o-y) growth and was within Kenanga Research’s expectations as it made up 28 per cent of their full-year projection of 710,000 units.

This forecast is slightly more conservative compared to the 740,000 units projected by the Malaysia Automotive Association (MAA) in 2024.

“We believe a new car is still an affordable luxury for most Malaysian households despite the high inflation and a slowing global economy underpinned by strong consumer confidence supported by a stable economy and a healthy job market, the affordability of motor vehicle underpinned by stable new car prices thanks to the deferment of new excise duty regulations and potentially cheaper hire purchase cost with the introduction of the reducing balance method in the calculation of interest charges, and attractive new models,” the research arm opined.

They added that 2024’s automotive sector will likely be a two-speed automotive market with it being business as usual for the affordable segment as its target customers; the B40 group will be spared the impact of the impending fuel subsidy rationalisation and also could potentially benefit from the introduction of the progressive wage model.

“However, the same cannot be said for the mid-market segment as its target customers, the M40 group may hold back from buying a new car or even down trade to a smaller car to cut their fuel bills upon the introduction of fuel subsidy rationalisation,” the research arm argued.

And for battery electric vehicles (BEVs), sales are expected to be support by new BEVs that will enjoy SST exemption and other EV facilities incentives up to 2025 for CBUs and 2027 for CKs.

“BEV new registrations have leapt from 274 units in 2021 to over 3,400 units in 2022 and 10,159 units in 2023, with 2,703 units for YTD 2024 and are on track to meet national target for EVs and hybrid vehicles of 15 per cent of total industry volume (TIV) by 2030, and 38 per cent of TIV by 2040,” the research arm reported.