KUCHING: The national marques’ sales volume will continue to be robust and compelling throughout 2019, AmInvestment Bank Bhd (AmInvestment Bank) has projected in the latest automobile sector report.
AmInvestment Bank reckoned that there will be a radical change in the sector for the first time since 2014, where national marques’ market shares have comfortably surpassed that of the non-national marques.
“The ongoing strong demand of Perodua’s Myvi and Axia, combined with Proton’s volume-oriented price competitive models like Persona and Iriz will continue to drive the local automobile sector in the short term,” the research firm said.
The research firm will provide a more detailed breakdown on this once it receives the Malaysia Automotive Association’s (MAA) May statistics.
According to AmInvestment Bank, Proton’s splendid performance in May 2019 has placed the group as the runner-up in the market share for the month, behind the other national titan Perodua.
“Proton managed to capture 17 per cent of the market share in May 2019. We believe this was due to three reasons: the Hari Raya festive rebates and discounts, the first full-month delivery of the new Persona and Iriz facelifts and a higher-than-expected sales from the Saga, raking in over 3,600 units for the month.”
On the sector outlook, the research firm looked forward to the anticipated revised National Automotive Policy 2019 (NAP 2019) which is likely to be announced in the second quarter of 2019 (2Q19).
“The new policy will set the long-term direction of the automotive ecosystem and also provide more clarity on the development of the New National Car Project (NNCP).”
All in, AmInvestment Bank had ‘buys’ on Bermaz Auto Bhd, Pecca Group Bhd, MBM Resources Bhd and Tan Chong Motor Holdings Bhd. The research firm’s ‘hold’ calls were on Sime Darby Bhd, DRB-Hicom Bhd and UMW Holdings Bhd while it was ‘underweight’ on APM Automotive Holdings Bhd.