Margin pressures may hinder auto segment in second half


While the Malaysian Automotive Association (MAA) has requested for an extension of the SST exemption period, the research house said: “Our base case assumes it will not be extended.”

PETALING JAYA: The local auto and auto parts sector could face speed bumps ahead, in terms of potential slowdown in the second half of this year (2H22) despite anticipation of a strong 1H22 performance.

According to RHB Research, auto distributors may experience margin pressures due to higher input costs and potential discounts to support auto sales, following the sales and service tax (SST) holiday.

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