kuala lumpur: According to Kenanga Research, total vehicle production (TIV) is expected to increase by 2% or 690,000 units in 2023 from an estimated 680,000 units in 2022.
The company’s forecast is brighter than the Malaysian Automobile Association’s (MAA) forecast of 636,000 units, the company said in a note.
“We believe the odds are in favor of the MAA increasing that number along the way. Unchanged, driven by continued growth in backlog, attractive new models can be purchased even though they are not exempt from sales and services tax (SST).
“Furthermore, vehicle sales will continue to grow with the launch of new battery electric vehicles that enjoy SST exemptions and other electric vehicle facility incentives through 2025 for complete units (CBU) and fully knocked down (CKD) through 2023. It will be supported.”
Kenanga Research said auto sales will remain strong in 2023, supported by the reopening of the economy. Financial assistance to low-income earners and subsidies for fuel, electricity and select food items to keep costs down. A relatively stable job market. A healthy household balance sheet for the M40 (middle income 40%) group.
The research firm also said it was unfazed by the impact of higher interest rates on car sales.
“Assuming Bank Negara Malaysia raises the Overnight Policy Rate (OPR) by a further 25 basis points (bps) to 3.00% in January 2023, the total OPR hike for 2022 and 2023 would total 125 bps. (1.75 bps to cents to 3.00 percent), which means for example monthly installments of Perodua Myvi AV (90 percent funding margin, 5 year holding period) priced at RM60,000 from RM 978 to RM 1,035 It’s only about 6 percent higher,” he said.
Kenanga Research also said that the actual interest rates charged will vary by terms, investor, vehicle type and personal creditworthiness, with popular newer models most likely to be charged at lower effective interest rate ranges. I’m here.
For our top picks for the sector, we selected MBM Resources Bhd and Bermaz Auto Bhd – Bernama