CIMB Securities said the new petrol subsidy mechanism provides near-term demand stability.
PETALING JAYA: Domestic automotive stocks continue to face headwinds amid intensifying competition from Chinese marques as the new RON95 petrol subsidy mechanism accelerates a structural transition in product mix towards efficiency and electrification.
CIMB Securities, which maintained a “neutral” call on automotive stocks, said the new petrol subsidy mechanism provides near-term demand stability underpinning sales momentum in the national car segment as well as entry-level Japanese marques, with potential upside to its 2025 total industry volume (TIV) forecast.
