KUALA LUMPUR, April 22 — Kenanga Research has maintained its “neutral” call on the automotive sector, despite the industry experiencing an increase in sales growth.
In a note today, it cited the Malaysian Automotive Association’s data of total industry volume for March 2019 having registered sales of 54,776 units , +10 per cent year-on-year YoY). “MoM sales growth surged on a normalised longer working month and automakers racing to deliver vehicles to meet their sales target for the quarter ended March 31, 2019 and concurrently, YoY sales growth was also higher on pent-up demand for the all-new models.
“The first three months of 2019 reported a TIV of 143,064 units which is within expectations at 24 per cent of our 2019 TIV target of 600,000 units ,” the research firm said. Meanwhile, Kenanga Research said the April 2019 sales volume is expected to be maintained close to the March 2019 level on the usual promotional activities, and roll-out of all-new models. — Bernama