According to the Malaysian Automotive Association (MAA), TIV for March 2022 registered at 73,222 units (+63% MoM, +13% YoY). Sales performance was stronger both MoM and YoY on aggressive sales ramp-up for automakers with financial year ending 31 March 2022, longer working month and higher production level to fulfil back-logged orders before the expiry of sales tax exemption by end-June 2022 (MAA has proposed for extension to December 2022 and is still waiting for government’s feedback). Sales for April 2022 are expected to be lower than March 2022 due to chip shortage, shorter Hari Raya month and delay in shipment that may also affect some companies especially with the limited CBU units given by respective principals. Much of the sales also were fulfilled by companies having financial year ending 31 March 2022. 1QCY22 TIV of 159,752 units came in at 20% of our target, within expectation. Maintain NEUTRAL with 2022 TIV target of 600k units (+18%) which is in line with MAA’s 2022 TIV target.
TIV for March 2022 registered at 73,222 units (+63% MoM, +13% YoY). Sales performance was stronger both MoM and YoY on aggressive ramping up of sales for automakers with financial year ending 31 March 2022, longer working month and higher production level to fulfil back-logged orders before the expiry of sales tax exemption by endJune 2022 (MAA has proposed for extension to December 2022 and is still waiting for government’s feedback). Sales for April 2022 are expected to be lower than March 2022 due to chip shortage, shorter Hari Raya month and delay in shipment that may affect some companies especially with the limited CBU units given by respective principals. Much of the sales also were fulfilled by companies having financial year ending 31 March 2022.
A detailed look at the passenger vehicles segment (+64% MoM, +13% YoY). The best performer MoM and YoY is Mazda (+385% MoM, +82% YoY) being one the companies having the financial year ending 31 March 2022 which boosted their sales by leveraging on fresh shipment of CBU units which was earlier delayed due limited supply from its Japanese principal. Mazda sales were mostly contributed by the face-lifted CX-5 and all-new CX-8. Nissan (+159% MoM, -1% YoY)’s all-new Almera has started to propel growth for the brand especially Nissan being one of the brand that have sufficient supply during this chip shortage situation. Honda (+75% MoM, +18% YoY)’s sales were mostly from City, Civic and BR-V with exceptional response for the all-new City and all-new City Hatchback. Perodua (+54% MoM, +10% YoY) drove stronger on delivery of the face-lifted MyVi which was launched on 18th November 2021 with its overall sales driven by the all-new Axia, Myvi, Bezza, and ARUZ and Ativa (5,557 units sold at 21% of sales). Toyota (+36% MoM, +7% YoY)’s sales were mostly from its exceptional top models namely all-new Toyota Vios, Yaris, and Toyota Hilux. Proton (+35% MoM, -17% YoY) sales were from the all-new X70 and X50 (3,808 units sold making up 31% of sales), and supported by the face-lifted Persona, Iriz, Exora and Saga (collectively known as PIES).
Maintain NEUTRAL with 2022 TIV target of 600k units (+18%). With the re-opening of economic activities, and further driven by the 100% sales tax exemption on CKD passenger vehicles and 50% similar exemption on CBU including SUV and MPV until end-Jun 2022, we expect buoyant recovery in car sales as evident from 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 were 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 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 chips supply. Automakers have prioritized usage of such resources, diverting any precious semiconductors they have to their most profitable vehicles such as full-size trucks and SUVs, as well as luxury vehicles. Malaysian Automotive Association (MAA) are currently vying for further SST exemption extension to end-2022 as the current chip shortages are limiting automakers’ ability to maximise production capacity to meet back-logged demand which stretched up to 6 months for certain models. Our 2022 TIV target at 600k units (+18%) is in line with MAA’s 2022 TIV target.
Source: Kenanga Research - 28 Apr 2022
Created by kiasutrader | Aug 26, 2024
Created by kiasutrader | Aug 26, 2024