Used cars are seen at Gunung Rapat, Ipoh September 8, 2021. — Picture by Farhan Najib
KUALA LUMPUR, Nov 24 — CGS-CIMB Research expects the automotive industry’s total industry volume (TIV) for November and December 2021 to sustain at current levels in view of new model launches, year-end promotions, and ongoing backlog orders.
The brokerage also reiterated its neutral stance on the industry, with Sime Darby as its top pick due to its diversified geographical exposure and as a proxy for stronger coking coal prices.
“TIV rose 43 per cent month-on-month to 63,489 units in October versus 44,275 units in September due to higher sales in passenger vehicle and commercial vehicle (CV) segments, as companies ramped up production and deliveries of vehicles to fulfil backlog orders.
“Total production volume also jumped 42 per cent month-on-month to 65,410 units, which is the highest monthly production volume year-to-date,” CGS-CIMB Research said in a research note today.
Meanwhile, Perodua’s market share shrank 4.4 percentage points year-on-year to 38.4 per cent year-to-date due to a 14.5 per cent year-on-year decline in sales volume following movement restrictions and chip shortages.
Meanwhile, Proton registered a narrower 0.6 per cent year-on-year sales volume decline in the first 10 months on 2021, largely due to higher contribution from the SUV segment, which helped offset lower sales volume in the passenger car and MPV segments. — Bernama