Business

Automotive TIV to hit 600,000: research house

This is on the back of SST-free extension, new model launches, says Maybank IB Research

Updated 5 years ago · Published on 06 Jan 2021 6:30PM

Automotive TIV to hit 600,000: research house
Perodua will continue to head sales, ahead of Proton, in 2021, says Maybank IB Research. – AFP pic, January 6, 2021

KUALA LUMPUR – Maybank IB Research expects Malaysia's automotive total industry volume (TIV) this year to drive closer to 600,000 units – an average of 50,000 a month – fuelled by the six-month sales and services tax (SST) holiday extension and new launches.

In a note today, the research house said it lauded the government’s decision to extend the SST holiday policy until June.

“This is a popular move which resonates well with buyers and sellers and it has been instrumental in sustaining the sales momentum from SST holiday effect since mid-June 2020,” it said.

The research house said Perodua will continue to head sales, ahead of Proton.

Perodua will be spurred by the roll-out of its much anticipated compact SUV (D55L) in the second quarter of this year, while the Proton's X-50 SUV model will provide a full-year impact to its overall sales in 2021.

“These two national marques should make up more than 60% of vehicle sales in Malaysia.

“Meanwhile, Toyota and Honda will continue competing for the No. 1 spot in the non-national segment,” it added.

The research house said its key buys include BAuto, MBM Resources, Sime Darby and UMW, on valuations, dividend yields and merger and acquisition perspectives. – Bernama, January 6, 2021

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