Rough road ahead for auto industry, says analyst
KINIBIZ Despite seeing some recovery in sales for May, the auto sector is still in for a rough ride this year, said Maybank Research yesterday.
In a report, the research house said the improved total industry volume (TIV) in May, up 13 percent month-on-month (m-o-m) froentm April, is rather “mild” after the 33 perc drop month-on-month seen in April.
“May TIV was still down 8 percent year-on-year (y-o-y),” said Maybank today, adding that in the five-month period to-date, “Perodua and Honda led in terms of market share gains, adding 6.5 and 2.3 percentage points respectively while Proton and Toyota shed 3.8 percentage points year-on-year of market share each.”
In April, TIV fell sharply following a rush in the months leading up to the implementation of the Goods and Services Tax (GST) from April 1 onwards. While sales rose pre-GST partly due to aggressive stock clearance by dealers, volume dipped sharply in April as cautious dealers held off on re-stocking amid uncertainty over GST.
Production dip
Despite the sales gain in May however, total industry production (TIP) fell 17 percent m-o-m in the same month, down 6 percent y-o-y for the five-month period to-date.
According to Maybank, lower production was seen across all major marques led by Hyundai, whose production fell 66 percent m-o-m.
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