MIDF Research expects the May TIV to improve month-on-month.
PETALING JAYA: The automotive sector is expected to grow moderately this year, with analysts having mixed views on the outlook for the total industry volume (TIV), as the market adjusts from a record-breaking year in 2024.
In a report on the sector, Hong Leong Investment Bank (HLIB) Research said it estimates 2025’s TIV to moderate to 750,000 units, representing an 8.2% year-on-year decline from the 816,700 units recorded in 2024. This is slightly below the Malaysian Automotive Association’s target of 780,000 units.
It attributed the lower forecast to declining order backlogs and a slowdown in new order intakes in the coming months.
Echoing HLIB Research’s view, MIDF Research noted that newer Chinese electric vehicle (EV) players, namely, BYD and Chery, bucked the trend with stronger registered growth.
Looking ahead, MIDF Research expects the May TIV to improve month-on-month, supported by festive demand and a longer working month. It maintained a “neutral” call on the sector, but downgraded MBM Resources Bhd
to “neutral” from a “buy.”
BIMB Securities, however, maintained a more optimistic stance, expecting TIV to remain robust, underpinned by a steady pipeline of new model launches, particularly in the EV and hybrid segments.
It also highlighted potential upside from Perodua’s upcoming locally developed EV, due for release by end-2025.
