KUALA LUMPUR, Dec 30 (Bernama) -- Kenanga Investment Bank Bhd (Kenanga IB) projects a total industry volume (TIV) of 805,000 units for the automotive industry in 2025, a marginal increase from an estimated 800,000 units in 2024.
The investment bank said the higher projection was backed by bigger pie slices encompassing a volume-driven affordable segment such as a healthy order backlog of Perodua vehicles which was sustained at more than 90,000 units backed by steady monthly deliveries and attractive new launches replacing older generation vehicles.
Other than that, a downtrading trend by mid-market buyers amid fuel subsidy rationalisation towards fuel-efficient vehicles, which include hybrid, battery-electric-vehicles (BEVs) and energy-efficient-vehicles, and a rising market share of Chinese automakers vehicles through vehicles production localisation programme will also help to boost the automotive sector, it added.
“We also anticipate a mid-term review of the National Automotive Policy (NAP) to include hybrid vehicles as a key transition to the national target for electric vehicles (EVs) and hybrid vehicles of 15.0 per cent of TIV by 2030 and 38 per cent by 2040,” said Kenanga IB in a research note today.
On the other hand, the investment bank expects Hong Leong Industries Bhd to benefit from the robust demand from the motorcycles market to achieve a record year of 680,000 units in 2025, with Yamaha holding the lion’s share of 50 per cent, as its target customers such as the B40 and M40 groups would be spared the impact of the impending fuel subsidy rationalisation.
Kenanga Investment Bank noted that the vehicle sales would also be supported by new BEVs that enjoy SST exemption and other EVs facilities incentives up until 2025 for completely built up (CBU) and 2027 for completely knocked down (CKD) units.
“We expect more favourable incentives from the government which has set a national target for EVs and hybrid vehicles of 15.0 per cent of TIV by 2030 and 38 per cent by 2040. Meanwhile, the government will speed up the approval for charging stations. The number of proposed charging stations is currently at 4,235 (3,354 built to date) and this should more than double to 10,000 by end-2025,” it added.
Apart from affordability, Kenanga IB said Perodua and Proton models have outsold non-national brands as they have also caught up in terms of specifications and features such as digital speedometer, fuel-efficient engine, highly-responsive gearbox, advanced driver assistance system, the number of airbags (four to six) and anti-theft auto-locking system.
MBM Resources and Hong Leong Industries were among the top gainers on Bursa Malaysia today.
As of 12.30 pm MBM Resources increased six sen or 1.0 per cent to RM6.06 and Hong Leong Industries jumped 12 sen or 0.71 per cent to RM14.28.
-- BERNAMA
