Malaysia’s automotive sector has been projected to record a stronger 2021, driven mainly by the extended SST holiday and the roll-out of new launches.
KUCHING: Malaysia’s automotive sector has been projected to record a stronger 2021, driven mainly by the extended sales and service tax (SST) holiday and the roll-out of new launches.
According to the research arm of Maybank Investment Bank Bhd (Maybank IB Research) recapped that 2020 ended on a high note.
Maybank IB Research recapped that December’s total industry volume (TIV) of 68,800 units was the highest for 2020 and ranked second highest in Malaysia’s TIV history, after December 2015’s 69,400 units).
“This was expected, for prospective buyers were rushing to take deliveries ahead of the expiry of the SST holidays, which was supposed to run up to end-December 2020,” the research arm said.
“Majority of the main non-national marques, Toyota, Honda, Nissan and Mazda, recorded their best monthly TIV in December and outperformed their national peers Perodua and Proton during the month.
“2020’s TIV of 529,000 units, surpassed our and the Malaysian Automotive Association’s (MAA) forecasts of 515,000 and 470,000 units respectively despite the absence of Mercedes Benz’s monthly data, which averaged 11,000 to 13,000 units per year since 2015.”
Looking ahead, Maybank IB Research maintained its 2021’s TIV of 580,000 to 600,000 units estimate in 2021.
This was fuelled by the SST effect (extended by another six months to June 2021), a full-year’s impact of Proton’s X-50 SUV and overall new launches.
“The most anticipated launch in 2021 would likely be Perodua’s compact SUV (D55L), which is scheduled to roll-out in 2Q21.
“Overall, we believe that our estimate is realistic, for we only expect a monthly average of 48,000 to 50,000 units per month.
“During the SST-holiday period in July-December 2020, the monthly TIV ranged between 53,000 and 69,000 units, averaging 59,000 units per month.
“That said, our 2021’s TIV estimate would match 2017-2018’s performance of 577,000 to 599,000 units.”
The research arm’s forecast is ahead of MAA’s 570,000 units and Fitch Solution’s 550,000 units.
“While there’s a general optimism for an improved year on year performance, we are wary of potential setbacks, that is supply chain disruption and unexpected ops shutdown due to Covid-19 pandemic.
“The market will also follow intently the development of Kia in Malaysia. Similar to Peugeot, there will likely be a change in ownership or distributorship at Kia, with the likely exit of Naza.”
The post Automotive sector to record stronger 2021 appeared first on Borneo Post Online.