Auto industry poised to maintain steady growth


BIMB Research said tighter consumer spending amid subsidy rationalisation would likely cap any upside to demand despite the rollout of new models.

PETALING JAYA: Cautious consumer sentiment will continue to weigh on vehicle sales and reflect on automotive-related stocks despite measures to boost demand and a range of mostly electric vehicle (EV) choices coming into the market, mainly from China.

Analysts have largely kept their recommendation on automotive stocks to “neutral”, following the Malaysian Automotive Association’s Tuesday release of September total industry volume (TIV) measuring vehicle sales showing a decline of 20% month-on-month to 58,490 units largely due to shorter working days in the month plus a week-long plant shutdown by Perodua.

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