Malaysia’s automotive domestic sales flattish in October due to Budget 2014

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FLATTISH THIS MONTH: The automotive sector’s total industry volume in Malaysia remained flat in October due to the anticipation of the Budget 2014. — Bernama photo

KUCHING: The automotive sector’s total industry volume (TIV) in Malaysia remained flat in October due to the anticipation of the Budget 2014.

According to MIDF Amanah Investment Bank Bhd’s research arm (MIDF Research), TIV declined marginally by 0.7 per cent year on year (y-o-y) to 55,100 units in October 2013. Sales of passenger vehicles shed 1.2 per cent y-o-y to 47,900 units while commercial vehicle sales volume inched up three per cent y-o-y to 7,100 units.

“The flat growth in October 2013 was most likely attributable to consumers holding back their purchases in anticipation of Budget 2014 which was announced on October 25, 2013.

“Therefore, we expect some pent up spending to return to market. The Kuala Lumpur International Motor Show 2013 which will run for 10 days from November 15, 2013 should provide support,” MIDF Research stated.

The research house highlighted that Perodua remained the market leader in October 2013, commanding a smaller 28.2 per cent of the market after the excellent pick up last month.

The number of units sold by Perodua in October 2013 was 15,500 units, representing a 2.6 per cent y-o-y slip. In comparison with September 2013, the market share achieved by Malaysia’s number one was lower by 3.7percentage points (ppts).

Meanwhile, Proton sat firmly in second spot.

The national automaker also garnered a lesser 23.5 per cent of the market in October 2013 with 1.8 per cent y-o-y less vehicles sold than the same period a year ago of 12,900 units. Similar to Proton, the national marquee’s market share fell back 3.5ppts relative to its market share a month ago.

On the non national side, the next three largest carmakers in October 2013 continued to be Japanese carmakers Toyota, Honda and Nissan.

The ranking among the three Japanese automaker remained status quo.

“Toyota was still the largest non-national marquee and Malaysia’s number three with its command of 14.9 per cent market share. The giant automaker, however, sold 8.6 per cent less on a yearonyear basis of 8,200 units.

“Nissan retained fourth spot this October 2013 with a market share of 7.3 per cent. Compared to September 2012, the Japanese automaker continued to register growth, selling 34.9 per cent y-o-y more in October 2013 at 4,000 units.

“Honda held onto fifth spot in October 2013 with its control of 7.1 per cent of the market. The carmaker sold 3,900 units in October 2013 which is 5.2 per cent more than the units it sold in September 2012,” MIDF Research stated.

All three non-national carmakers Toyota, Nissan and Honda gained market share of 4.7ppts, 0.2ppts and 1.1ppts respectively. Toyota, however, gained the most market share this October 2013.

On an annualised basis, Malaysia’s cumulative TIV now stands at 651,700. This accounts for 102.2 per cent and 101.8 per cent of ours and MAA’s full year forecasts of 637,500 and 640,000 units respectively.