KUALA LUMPUR, Nov 20 — Kenanga Investment Bank Bhd has upgraded its calendar year 2023’s total industry volume (TIV) forecast by seven per cent to 770,000 from 720,000 units amid stronger-than-expected sales volumes across the board, especially for Perusahaan Otomobil Kedua Sdn Bhd (Perodua).
TIV returned to high gear in October 2023 with 74,896 units, a growth of 10 per cent month-on-month and 21 per cent year-on-year driven by aggressive promotional campaigns and an improved supply of automotive parts.
Cumulatively, the 10-month calendar year TIV reached 646,840 units, it said in a note.
“Our optimism is underpinned by strong consumer confidence supported by a stable economy and a healthy job market, and the affordability of motor vehicles underpinned by stable new car prices thanks to the deferment of new excise duty regulations and potentially cheaper hire purchase cost with the introduction of the reducing balance method in the calculation of interest charges, and attractive new models,” it said.
On the other hand, Kenanga Investment maintains its calendar year 2024 TIV of 710,000 units.
This is lower year-on-year due to the fuel subsidy rationalisation and a potential hike in new car prices from the increase in sales and services tax (SST) to eight per cent from six per cent.
“We believe a new car is still an affordable luxury for most Malaysian households despite the high inflation and a slowing global economy.
“We now see greater opportunities in the affordable segment as it will be less affected by the introduction of targeted fuel subsidy that may dent the demand for mid-market vehicles as it will erode the spending power of the M40 group,” it noted.
— Bernama
