KUALA LUMPUR:Am Research is maintaining a neutral call on the automotive sector on expectation that the bulk of vehicles
launches and deliveries will pick up pace from August onwards, despite the earnings uncertainties due to supply chain crisis.

In a note today, the research firm said the call was maintained due to the early-than-expected new Perodua Myvi launch date and potential price discount towards the third and fourth quarter of this year.

Potential discount is possible as the sector's players will rush out to meet annual volume commitments to principals, it said in a statement today.

On Perusahaan Otomobil Kedua Sdn Bhd (Perodua), the firm said the early launch of the new Myvi version, despite inventory issues, was suspected to be a measure to lock in customers and minimize market share loss should buyers opt not to wait for the initial September launch date and switch to a competing model.

However, we do not rule out Perodua reaching its sales target of 8,500 units per month given the company can solve inventory shortage particularly in electronics parts and avoid a long waiting period after the booking for the new Perodua Myvi which may deter some buyers from honouring purchase bookings, it added. - Bernama