KUALA LUMPUR, Nov 25 — CGS-CIMB forecasts the total industry volume (TIV) for 2021 (2021F) to rise by 14 per cent to 570,000 driven by stronger demand for national brands on the back of new model launches such as Proton’s X50 and Perodua’s new compact SUV, D55L.
In a research note today, it also expects stronger recovery from Japanese marques such as Honda, Nissan and Toyota driven by new launches such as Honda City, Nissan Almera and Toyota Yaris facelift.
“In spite of the sales tax holiday expiring at end-2020F, Malaysian Automotive Association (MAA) expects TIV to increase from 470,000 in 2020F to 550,000 in 2021F driven by new model launches and ongoing promotional campaigns by the dealers,” it said.
CGS-CIMB further expects stronger auto sector earnings delivery quarter-on quarter 3Q20F driven by recovery in sales volume on the back of the sales tax holiday.
“We think valuations are reflective of improving sector earnings prospects in 2H20F.
“Sime Darby is our top pick due to its diversified earnings base, attractive recovery prospects in China and potential for higher dividends,” it added.
TIV rose 0.4 per cent to 56,670 units in October 2020 from 56,444 units in September 2020 due to new model launches such as Honda City and Proton X50 and ongoing promotional campaigns by dealerships.
The increased TIV delivery was mainly driven by higher demand for passenger vehicles (+0.7 per cent), while commercial vehicle demand fell 2.9 per cent month-on-month.
— Bernama
