Kenanga Research said TIV for the first 10 months made up 83% of its full-year projection of 800,000 units.
PETALING JAYA: A full month production schedule of Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and an aggressive rollout of year-end specials by original equipment manufacturers (OEM) has resulted in the increase of total industry volume (TIV) for the month of October 2024.
In a note, Hong Leong Investment Bank (HLIB) Research said TIV rebounded 20.3% to 69,900 units but on a year-on-year basis, TIV fell 9.1% due to lower order backlogs.
For the first 10 months of this year, 664,000 units were sold on the back of Perodua’s improved supply chain and deliveries, stronger Honda sales for their newly launched models and new entrances by China OEMs.
“The strengthening of the ringgit also bodes well for the sector, potentially offsetting the higher operating costs environment in the fourth quarter of 2024,” it said, adding it has upgraded the 2024 TIV forecasts to 800,00 units from 760,000 units.
HLIB Research added it noticed more aggressive launches by Chinese OEMs with attractive pricings and features, which will provide stiff competition to incumbent OEMs.
The research house’s top picks included MBM Resources Bhd
and DRB-Hicom Bhd for strong leverage on national OEM’s, as it maintains its “neutral” call on the sector.
Meanwhile, Kenanga Research said TIV for the first 10 months made up 83% of its full-year projection of 800,000 units.
“Our 2024 TIV projection looks set to surpass the forecast of 765,000 by the Malaysia Automotive Association, backed by strong sustained demand in the affordable segment, attractive new launches, softer-than-expected impact from e-invoicing and a downtrading trend by mid-market buyers,” it noted.
