According to the Malaysian Automotive Association (MAA), TIV for December 2021 registered 65,184 units (+11% MoM, -5% YoY). December saw the highest monthly sales recorded in 2021 as automakers continued to ramp up car productions, boosted by year-end promotional campaign despite having to endure computer chip shortage issues which affected YoY growth. Automakers are currently diverting their chip supply towards popular models to meet back-logged demand (stretching up to 6 months for certain models). 2021 ended the year with TIV of 508,911 (-4%), closely within our 2021 TIV expectation of 505,000 units, and slightly above MAA’s 2021 TIV target of 500,000 units. Sales for January 2022 are expected to drive slower than December 2021, coming off from strongest month of the year, and slightly affected by supply disruption caused by floods in certain parts of Klang Valley and East Coast. Maintain NEUTRAL with 2022 TIV target of 600k units (+18%) which is in line with MAA’s 2022 TIV target. SST-exemption is still on-going until June 2022, with slew of new launches ahead (including models launches that was postponed from 2021).
TIV for December 2021 registered 65,184 units (+11% MoM, -5% YoY). December saw the highest monthly sales recorded in 2021 as automakers continued to ramp up car productions, boosted by year-end promotional campaign despite having to endure computer chip shortage issues which affected YoY growth. Automakers are currently diverting their chip supply towards popular models to meet back-logged demand (stretching up to 6 months for certain models). Sales for January 2022 are expected to drive slower than December 2021, coming off from strongest month of the year, and slightly affected by the supply disruption caused by floods in certain parts of Klang Valley and East Coast.
A detailed look at the passenger vehicles segment (+10% MoM, -7% YoY). Most of the MoM growth was from Perodua (+14% MoM, -9% YoY) as it drove stronger on delivery of the facelifted MyVi which was launched on 18th November 2021. MyVi has accumulated 14,600 orders as of 2nd December 2021 with 7,189 units which were converted from previous variants. Perodua sales were driven by the all-new Axia, Myvi, Bezza, and ARUZ and Ativa (5,924 units sold at 26% of sales). Nissan (+15% MoM, -26% YoY)’s all-new Almera has started to propel growth for the brand, but overall growth still lagged behind other marques from the dearth of all-new model launches. Honda (+5% MoM, -31% YoY)’s sales mostly came from City, Civic and BR-V with exceptional response for the all-new City. Proton (-2% MoM, +7% YoY)’s sales were due to the all-new X70 and X50 (5,849 units sold making up 43% of sales), and supported by the face-lifted Persona, Iriz, Exora and Saga (collectively known as PIES). Toyota (-2% MoM, +10% YoY)’s sales mostly came from its exceptional top models namely all-new Toyota Vios, Yaris, and Toyota Hilux. Mazda (-11% MoM, -32% YoY)’s sales were mostly contributed by the face-lifted CX-5 and all-new CX-8. Consumers held back purchases anticipating newer models launching in 2022 affecting both Mazda’s MoM and YoY growth.
Maintain NEUTRAL with 2022 TIV target of 600k units (+18%). 2021 end the year with TIV of 508,911 (-4%), closely within our 2021 TIV expectation of 505,000 units, and slightly above MAA’s 2021 TIV target of 500,000 units. With the re-opening of economic activities, further driven by the 100% sales tax exemption on CKD passenger vehicles and 50% on CBU including SUV and MPV for six months until 30th June 2022, we expect buoyant recovery in car sales especially with the growing number of back-logged bookings for popular models (up to 6 months) and stream of new models launches in 2022 (including models launches that was postponed from 2021). Additionally, Battery Electric Vehicles (BEVs) new launches are expected to be boosted by the full exemption on import & excise duties, sales tax, road tax, and individual tax relief of up to RM2,500 for the costs of purchase and installation; as well as rental and subscription fees of EV charging facilities up to 31st December 2025 (for CKD, CBU up to 2023) to support development of the local EV industry. Nevertheless, for certain models, the recovery of car production could be limited by the on-going global constraint in semiconductor chip supply. Automakers have prioritized usage of such resources, diverting what precious semiconductors they have to their most profitable vehicles such as full-size trucks and SUVs, as well as luxury vehicles. Our 2022 TIV target at 600k units (+18%) is in line with MAA’s 2022 TIV target.
Source: Kenanga Research - 24 Jan 2022
Created by kiasutrader | Aug 26, 2024
Created by kiasutrader | Aug 26, 2024