CGS-CIMB says it expects Perodua to extend its dominant market position in 2022 in view of favourable market reception for new launches like the Alza.
PETALING JAYA: CGS-CIMB Securities Sdn Bhd expects total industry volume (TIV) to be lower by 8% in the fourth quarter of 2022 (4Q22) due to macro headwinds which have dampened booking sentiment.
In a note yesterday, it said the softer TIV forecast was in view of delays in component deliveries due to the ongoing chip and component shortages impacting vehicle deliveries in the near term; the higher interest rate environment; and weakening consumer sentiment amid risks of a potential slowdown in the domestic economy.
In October, the TIV fell by 9.8% month-on-month (m-o-m) to 61,002 units, as sales in both the passenger vehicle and commercial vehicle segments slipped by 9.3% m-o-m and 14.4% m-o-m, respectively.
It said for the first 10 months of 2022, TIV rose 51% year-on-year (y-o-y) to 577,800 units, driven by higher sales in the non-national segment (60.5% y-o-y), led by Japanese marques, while both Perodua and Proton delivered 44.1% y-o-y TIV growth during the same period.
CGS-CIMB added that it expects Perodua to extend its dominant market position in 2022 in view of favourable market reception for new launches like the Perodua Alza.
“Moreover, we estimate Perodua still has over 100,000 units worth of backlog orders post-expiry of the tax exemption,” it said.
Overall, the research house maintained its “neutral” call on the Malaysian automotive sector, naming Bermaz Auto Bhd
as its top pick due to its attractive 5% to 5.6% 2022-2023 dividend yields and expanding market share following the addition of the Kia and Peugeot marques to its stable.
— Bernama
