PETALING JAYA: Analysts are projecting Tan Chong Motor Holdings Bhd
’s (TCM) sales volume to stay weak this year amid intensifying competition from Chinese marques.
TCM owns and operates the distribution franchise for Nissan vehicles in Malaysia.
RHB Research in a report noted that Nissan’s market share further shrank to 0.6% year-to-date (y-t-d) in April 2026.
“Without a clear recovery plan from management, we remain cautious on the group’s near-term turnaround.
On the electric vehicle (EV) front, TCM’s completely-knocked-down Wuling Bingo EV posted an 86% month-on-month increase in registered units in April 2026 (91 units), bringing y-t-d 2026 registered units to 241 (1% of EV’s total units).”
RHB Research said it expects the EV model to have “slow but steady demand,” as it is not affected by the recent policy shift regarding EV models.
Nevertheless, the research house said this may be offset by the stiff competition in the sub-RM100,000 segment, particularly from the Proton e.MAS 5.
“Separately, TCM’s venture with Perodua to lease part of its Serendah facility has also shown a modest improvement, as Perodua’s QV-E registered 52 units in April 2026 (from 11 units in March), although short of its initial target of 500 units per month.
“As TCM retains its traditional automotive model of owning the production lines, this may help to better manage its fixed costs by optimising the current capacity.”
That said, from an underlying asset angle, RHB Research said the disposal and development of TCM’s landbank could unlock re-rating potential.
“However, we note there is still no clarity on the timing, location, or size of potential land sales.
“Moreover, as most of its land is tied to the ongoing Nissan manufacturing operations, this may limit near-term plans to develop and sell these assets.”
TCM posted a net loss of RM12.18mil in the first quarter ended March 31, 2026 (1Q26) from a net profit of RM4.14mil a year ago.
Revenue for the quarter dropped to RM457.77mil from RM553mil in the previous corresponding period.
In a filing with Bursa Malaysia last week on its 1Q26 financial results, the company said the loss was mainly due to one-off fair value gain on investment properties of RM54mil recognised in 1Q25.
MBSB Research in a report said TCM’s results came in within expectations.
“Although vehicle sales remained subdued, losses narrowed sequentially.
“In the Malaysian market, following the launch of the Nissan Serena e-POWER in March 2026, the next e-POWER model launch is speculated to be the fifth-generation X-Trail. We look forward to obtaining further insights on the group’s performance at this week’s briefing. We continue to expect the group to remain loss-making over our forecast period.”
Meanwhile, Hong Leong Investment Bank (HLIB) Research said TCM’s financial results came in below expectations.
“TCM continues to face weak sales performance from its Malaysia Nissan segment, with 1Q26 volumes at only 1,311 units.
“Looking ahead, TCM is expected to benefit from its contract assembly agreement for the Perodua QV-E model at its Serendah plant, as Perodua plans to ramp up production in coming months.”
The research house added that the group is also expected to benefit from the recently launched TQ Wuling Bingo EV, an affordable entry-level compact EV priced between RM63,000 and RM68,000.
“The Vietnam market has seen lower losses in 1Q26 due to on-going cost optimisation measures being implemented. However, sales are expected to remain challenging. The Myanmar market has turned around in 2025.
“Meanwhile, the recent appreciation of the ringgit is expected to improve the cost structure of its Malaysian operations.”
