The Malaysian Automotive Association (MAA) reported a 23.6% MoM increase in total industry volume (TIV), reaching 71.7k vehicles in July 2024. This rise was expected, as June production was affected by temporary shutdown of some manufacturing plants for scheduled operational improvements. The increase was further driven by a longer working month and the launch of new models. YTD, TIV totalled 462.1k units, marking a 7.2% increase compared to the previous year. This growth was mainly supported by a strong performance in the passenger car segment, which rose by 9.6% to 422.6k units. In contrast, the commercial vehicle segment declined to 39.4k units, a drop of 12.8% YoY.
National car brands experienced significant sales growth in July, with Perodua recording a 35.2% MoM increase. Proton also saw a significant sales volume, surging 39.1% compared to the previous month. To recap, June sales were impacted by planned plant shutdowns for operational improvements, which temporarily reduced production. We gathered that Proton’s sales growth was driven by sales performance of Proton Saga, while Proton X50 achieved its highest sales figures of the year. YTD, Perodua reported a substantial 16.6% increase in sales, reaching 201.9k units. On the other hand, Proton experienced a slight decline of 2.3% YoY, with sales totalling 87.0k units. The combined market share of national car brands remained relatively stable at 68.4%, up from 68.0% in the first seven months of 2023.
The non-national car segment recorded a 4.1% MoM increase, reaching 18.8k units. YTD, all major brands reported lower sales in the first seven months of 2024, except Honda. Honda experienced a 16.1% growth, totalling 46.1k units, driven by the launch of new models and facelifts. Other major non-national brands saw declines in sales, ranging from 0.4% to 45.9%. In terms of passenger market share, Honda led with 10.9%, followed by Toyota at 9.4%, and Mazda at 2.3%.
We maintain our NEUTRAL recommendation for the sector. Despite the introduction of new models, facelift versions, and new variants, forthcoming car sales might be influenced by declining consumer sentiment amid the implementation of the targeted fuel subsidy scheme. Our 2024 TIV forecast of 700k units (-12.5% YoY) is currently under review. Maintain SELL on MBMR (TP: RM4.70), BUY on BAuto (TP: RM2.74) and HOLD on SIME (TP: RM2.85).
Source: TA Research - 22 Aug 2024
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SIMECreated by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024
Created by sectoranalyst | Aug 22, 2024