Auto industry may have another record-breaking year, say analysts

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Auto industry may have another record-breaking year, say analysts
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PETALING JAYA: RHB Research is expecting Malaysia’s automotive sector to deliver another record-breaking year if the monthly total industry volume (TIV) picks up in the next four months.

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The launch of Perodua Axia is expected to contribute to strong car deliveries in the second half of 2023. RHB Research is expecting Malaysia’s automotive sector to deliver another record-breaking year if the monthly total industry volume picks up in the next four months.

As for 2024, RHB Research said next year’s TIV may soften year-on-year on lack of catalysts to support high orders and deliveries, especially if this year’s TIV hits a peak. “While stronger electric vehicle adoption may be an upside risk to 2024’s TIV, we do not think this will be significant enough to move the needle,” it said.

“However, the recent round of analyst briefings has suggested that backlog order growth has started to flatten with initial signs of receding compared to March-June levels following a pickup in production to address the long waiting list previously.“While we believe TIV momentum is close to peaking after record-breaking TIV in 2022 with another potential new record this year, we do not expect a drastic fall at this juncture,” MIDF Research said.

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