Optimism as July car sales rise to 14-month high
KUCHING: A tax holiday and promotional campaigns were some of the catalysts pushing July’s total industry volume (TIV) to 57,600 units – an increase by 29 per cent month on month (m- om) and 13 per cent year on year (y- o-y) – making it the highest in 14 months.
July marks the third month since the auto industry was re- opened in early-May. It also marks the maiden full month impact of the Penjana stimulus package’s tax holiday incentive initiated mid-June.
AmInvestment Bank Bhd (AmInvestment Bank) recapped that national marquees Proton and Perodua performed well.
“Perodua registered sales volume of 23,200 units. The Aruz SUV sold a total of 2,300 units for the month. Perodua guided that the launch of the unnamed Perodua D55L five-seater SUV will be delayed till 2021,” it detailled in a sector review yesterday.
“On a separate note, Perodua has ramped up its monthly production volume to about 25,000 per month to cater for the uptick in demand for its vehicles due to the exemption of the SST. We note that Perodua sold an average of 20,000 per month in 2019.
“Proton delivered 13,200 units, which was the highest monthly sales volume recorded in eight years,” it added. “A total of 3,200 units of the X70 were sold in
July and the model continued to be the best-selling SUV in Malaysia with 2020 sales up to July amounting to 9,900 units.”
AmInvestment Bank expect the X70 and the Proton’s mainstay PIES models to continue selling well in the second half of 2020 (2H20) as these entry-level models are even more affordably priced and offer value for money now with the price reductions post-SST exemption.
Currently, Proton’s market share stood tall at 23 per cent in July, consolidating its position in second place with a year-to-date market share of 21.7 per cent behind Perodua’s 41.9 per cent.”
As for foreign car brands, Honda sold 6,000 units, and its market share of the nonnational marques is now 10 per cent standing behind Toyota. Toyota sold a decent 7,400 units in July, its highest for the year, bringing its sales for its first seven months of 2020 to around 25,600.
Nissan continued to show a lacklustre performance in its sales volume in July, recording a total of 1,600 units despite the Sales and Services Tax ( SST) exemption. Mazda posted a sales volume of 1,200 units in July – its best sales performance in 15 months.
The strong recovery in July’s TIV underpins a stronger 2H20 outlook, said analysts at MIDF Amanah Investment Bank Bhd (MIDF Research).
“The sustained TIV recovery in July underpins our upgrade
Perodua registered sales volume of 23,200 units. The Aruz SUV sold a total of 2,300 units for the month. Perodua guided that the launch of the unnamed Perodua D55L five-seater SUV will be delayed till 2021. AmInvestment Bank
of autos following the announcement of the sales tax-holiday which commenced on June 15,” it highlighted in another note.
“Car prices have generally been reduced by between two to seven per cent, given savings from the sales tax exemption incentive.
“These early trends of a recovery are very encouraging. Notwithstanding dented consumer sentiment given the impact of lockdown measures to contain the Covid-19 pandemic, the strong combination of Taxholiday-induced demand; Robust liquidity created for consumers from various stimulus measures which transfers massive amounts of cash into consumer’s pockets; and low interest rate environment are strong catalysts to drive a rebound in vehicle-buying sentiment, in our opinion.”