November 2019 registered sales of 52,584 units (-2% MoM, +9% YoY). MoM sales growth was marginally lower, from normalisation of production delivery after September overflow of stock delivery spilled into October after a spate of public holidays in September, while YoY sales surged due to the low-base effect after the historic tax holiday which ended on 31st August 2018, and overall stronger year-end promotion.

Taking a detailed look at the passenger vehicles segment (-3% MoM, +10% YoY), MoM sales declined 3%, tracking the overall unit sales trend while YoY, November passenger car sales soared 10% higher on the above mentioned reasons. Toyota (+14% MoM, +178% YoY) drove the highest MoM and YoY sales contributed by the all-new Toyota Vios, all-new Toyota Yaris, and Toyota Hilux, which comprised 74% of UMW Toyota sales, while exceptional sales YoY was from a low base effect last year after production recovery post a tax-holiday period. This was followed by Honda (+5% MoM, -6% YoY) from its best-selling models of Honda City but still awaiting pricing approval to launch its new model, and Proton (+1% MoM, +100% YoY) backed by its popular Proton X70 (25,687 units delivered) with 2,152 units sold (22% of November sales), and further supported by face-lifted Proton Saga, Iriz, and Persona. Mazda (-20% MoM, -58% YoY) fared the worst after clearing out its outgoing models inventory in October 2019, and affected by the delayed pricing approvals for face-lifted CX-5 and all-new CX-8. This was followed by Perodua (-10% MoM, -3% YoY) which has shifted its sales focus toward the all-new Perodua ARUZ (27,389 units delivered) recording 2,226 units sold (15% of November sales), and Nissan (-3% MoM, -42% YoY) which remained weak due to dearth of all-new model launches to spur demand as well as lower traction from the face-lifted Nissan X-Trail.

Expecting December 2019 to remain strong and end the year with at least 600,000 units. Sales volume for December 2019 is expected to be maintained around October 2019/November 2019 level and we also project the year to end with at least 600,000 units, driven by the continuation of aggressive year-end promotional campaign especially by players which have their financial year ending 31st December. Overall, car sales will be supported by the higher delivery of new models, including the allnew Perodua ARUZ (entry-level SUV segment), Honda HR-V facelift (includes Hybrid), all-new Toyota Vios, all-new Toyota Yaris, all-new Proton X70, face-lifted Proton Persona, Iriz, and Saga (X70 unique features), and face-lifted Nissan X-Trail as well as maiden delivery of the face-lifted CX-5 and all-new Mazda CX-8.

Source: Kenanga Research - 23 Dec 2019