KUALA LUMPUR, March 22 (Xinhua) -- Analysts have foreseen Malaysia's current total industry volume (TIV) not sustainable given the lack of drivers to boost sales to a new high after two record-breaking years.
RHB Investment Bank said in a recent note that it anticipates Malaysia's March TIV to be lower year on year, given last year's high base due to carmakers making a final push for sales and service tax (SST) exemption deliveries.
However, as January's TIV was exceptionally strong, the research house believes first quarter TIV to be slightly higher year on year on the back of order backlog clearance.
It noted that this will be followed by lower year on year quarters ahead as normalization of sales volumes after record high year takes place.
According to RHB, Malaysia's first two months TIV already makes up 20 percent of its 2024 TIV forecast of 625,000 units.
The Malaysian Automotive Association (MAA) reported a TIV of 62,833 units in February, falling 4.07 percent month on month and 1.15 percent year on year. In the first two months, Malaysia's TIV rose 12.84 percent year on year to 128,332 units.
Meanwhile, Kenanga Research said in a recent note that the TIV made up 18 percent of its full-year projection of 710,000 units, and it considered the number meeting its expectation.
The research house maintained its full-year projection which is a tad lower than the 740,000 units projected by the MAA.
"We hold the view that the impending fuel subsidy rationalization will likely hurt demand for mid-market models, while remaining optimistic on the sales of affordable vehicles," it said.
TA Securities, on the other hand, said in a note on Friday that after another record-breaking year in 2023, it expects the automotive sector to normalize in 2024.
The research house sees Malaysia to register a weaker TIV of 650,000 units this year due to the absence of tax incentives and depleting order book. ■
