Latest news with #Perodua
The Star
2 days ago
- Automotive
- The Star
Vehicle sales forecast to be more subdued for 2H
PETALING JAYA: The automotive industry appears set for a more subdued second half of the year (2H25), on the back of persistent margin pressures, moderating demand and fierce price competition, analysts say. Resilient national marques, particularly Perodua, are expected to provide support for overall volumes amid evolving regulatory and economic landscapes. Hong Leong Investment Bank Research (HLIB Research) upgraded total industry volume (TIV) forecast for this year to 770,000 units from 750,000, citing Perodua's continued sales strength. 'We expect 2H25 TIV to be sustained, supported mainly by Perodua's sales deliveries to clear the current backlog of 100,000 orders and the still healthy new order intake,' HLIB Research noted. Perodua's market share, affordability and localisation initiatives positioned it to weather broader sector challenges, the research house added. HLIB Research projects 345,000 units in sales for national carmakera this year, as order backlogs, while easing to about 120,000 to 130,000 units overall, remained Perodua-heavy. However, it also warned that margins are to come under pressure due to intensifying competition across the market. Kenanga Research maintained a higher TIV forecast of 805,000 units for the year, attributing the optimism to forward-buying interest on the deferment of new excise duty regulations to the end of this year, as well as improved household incomes and continued demand in the affordable segment. 'We expect Perodua to benefit the most, at 44% TIV market share, with the highest localisation rate,' the research house said. That said, a different picture is emerging in the premium-car market, Kenanga Research said. The research house cautioned that rationalisation of fuel subsidies, rising utility costs and shifting consumer priorities may push high-income buyers to either delay purchases or switch to hybrids and electric vehicles (EVs). 'The target customers in the premium segment may hold back from buying new cars, opt for smaller cars or switch to hybrids and EVs,' it said. EV adoption continued to be a focal point for the industry, with all research houses closely monitoring the segment. According to BIMB Research, Malaysia's EV registrations dropped 21% month-on-month (m-o-m) in June to 3,272 units, largely due to normalisation after a string of launches. 'Tesla led the pullback (down 45% m-o-m to 587 units), while BYD remained the top seller with 1,045 units,' the research house said, adding that penetration edged up to just 4.3%, which was well below the government's 20% target by 2030. BIMB Research also flagged affordability concerns and slow infrastructure deployment as part of the slowdown. 'Affordability challenges and aggressive pricing from Chinese original equipment manufacturers (OEMs) continue to pressure margins and sentiment. Elevated borrowing costs and slow EV infrastructure rollouts add to headwinds,' it said. RHB Research offered a more guarded tone, maintaining its TIV projection at 730,000 units, citing diminishing order backlogs and waning post-pandemic demand. 'After three record-breaking years, we do not see any exciting catalysts for auto sales this year to be maintained at the current elevated levels,' it said. The research house pointed to falling loan approval rates, now at 55% year-to-date versus 58% to 63% from 2022 to 2024, and mounting inflationary pressures that may prompt buyers to hold off amid anticipated price cuts. 'The influx of new models, coupled with aggressive price discounting has created a highly competitive environment,' RHB Research said. Looking ahead, regulatory shifts are expected to shape industry dynamics. HLIB Researchy noted that the New Customised Incentive Mechanism (NCM), due by the fourth quarter of this year, would replace the Industrial Linkage Programme and offer a more structured, 'menu-based' incentive framework encouraging localisation, EV development and research and development. 'NCM is being structured to encourage OEMs to expand localisation at the local-vendor level,' the research house said. Meanwhile, the implementation of the revised open market value-based excise duty structure has been deferred for the fourth time, is now set for implementation by January 2026. However, RHB Research said it believes that the 10% to 30% hike in vehicle prices once the new duty structure in implemented is 'unlikely to happen', though pressure on the supply chain remains with only five months left before the policy kicks in. All four research houses maintained a 'neutral' stance on the sector.
New Straits Times
22-07-2025
- Automotive
- New Straits Times
RHB: Inflation to weigh on Malaysia auto sales in 2H25
KUALA LUMPUR: Malaysia's automotive sector is expected to face softer sales momentum in the second half of 2025 due to looming inflationary pressures on consumers, according to RHB Research. The firm said the decline will also be driven by incumbent non-national marques, which continue to face intensifying competition as a result of new entrants, primarily Chinese carmakers. "The influx of new models coupled with aggressive price discounting has created a highly competitive environment. "Some buyers may delay their purchases in anticipation of further price cuts from both existing and new non-national marques, thereby destabilising the non-national segment," it added. RHB Research kept its total industry volume (TIV) forecast at 730,000 units, representing an 11 per cent decline on a yearly basis. The firm noted that after three consecutive record-breaking years, the market is showing signs of normalisation amid weakening order backlogs, tighter loan approvals and intensifying price competition, particularly in the non-national segment. As of June 2025, TIV stood at 373,636 units, accounting for 51 per cent of RHB Research's full-year projection. Carmakers such as Perodua and Toyota have seen a decline in order backlogs to 90,000 and 15,000 units, respectively, compared to 100,000 and 20,000 units a year ago. Loan approval rates for vehicle purchases have also dipped to 55 per cent year-to-date, down from 58–63 per cent in the 2022–2024 period, pointing to tighter credit conditions. These factors, combined with looming inflationary pressure, suggest further moderation in consumer demand. In the electric vehicle (EV) space, RHB Research expects growth to persist but remain modest due to high prices and limited charging infrastructure. The firm said the current tax exemptions for completely built-up (CBU) EVs, which have supported early adoption, are unlikely to be extended beyond end-2025, as the government shifts its focus to incentivising locally assembled EVs. "An extension of the tax holiday for CBU EVs would be counterproductive for incentivising original equipment manufacturers to establish local production facilities. "While we expect EV numbers to continue picking up in the coming months, growth in market share is likely to remain moderate due to structural headwinds, such as high pricing and limited availability of charging infrastructure. "As such, EVs are unlikely to influence overall TIV in the near term," RHB Research said. The firm added that another overhang is the impending implementation of the revised open market value (OMV) excise duty in January 2026. The firm said that though recently deferred again, it could lead to a 10–30 per cent price hike for CKD vehicles unless mitigated by the authorities. The Finance Ministry has signalled that such a steep hike is unlikely but has yet to finalise the new pricing methodology. "The new OMV takes into account the engineering work, royalty payments and license fees, amongst others. "For CBU vehicles, prices are based on the cost, insurance and freight, on which import and excise duties are imposed," it added. RHB Research maintained its "neutral" stance on the auto and autoparts sector.
Focus Malaysia
22-07-2025
- Automotive
- Focus Malaysia
Affordable cars dominate market as consumers downtrade amid economic pressures
TOTAL industry volume (TIV) plunged 19% month-on-month (MoM) largely due to scheduled plant maintenance shutdowns during the Hari Raya Aidiladha holidays. Meanwhile, TIV declined 6% year-on-year (YoY) mainly due to the shifting of new models launches toward the second half (2H) for this year by Perodua and other Japanese marques. 'Looking ahead, we believe July 2025 TIV will be much higher than June 2025 TIV with full production month and attractive mid-year sales bonanza,' said Kenanga. National marques stood their ground, reaping market share from the non-nationals marques, especially Perodua, backed by strong sustained demand in the affordable segment, attractive new launches, and a downtrading trend by mid-market buyers. Within the non-nationals marques, Mazda suffered the most due to slower new launches and being affected by intense competition from Chinese marques. We have the passenger vehicle segment in June 2025 at 49,804 units. A two-speed automotive market locally will persist stretching to end-2025 and flowing into calendar year 2026 (CY26). It will be business as usual for the affordable segment as its target customers, that is, the B40 and lower tier M40 groups, will be spared the impact of the impending RON95 subsidy rationalization and could also potentially benefit from the introduction of the progressive wage model. Government is still finalizing the mechanism to use for the RON95 subsidy rationalisation and expects that 90% of the Malaysian will not be affected. The upper-tier M40 and T15 groups may hold back from buying new cars, down-trade to smaller cars or switch to hybrids and EVs to cut their fuel bills upon the introduction of fuel subsidy rationalisation. Concurrently, household bills will also be affected by the higher fuel bills, as well as expected 14% increase in base tariff for the higher-end usage which could also drive consumers to switch to solar-panels, in-turn boosting the demand for EV to funnel the excess grid electricity. Additionally, EV routine maintenance costs are considerably lower than ICE's due to fewer moving parts and wear & tear parts. Vehicle sales will also be supported by new BEVs that enjoy SST exemption and other EV facilities incentives up until CY25 for CBUs and CY27 for CKDs. The new registration for BEVs leapt from 274 units in CY21 to over 3,400 units in CY22, 13,301 units in CY23, and 21,789 units in CY24 (based on the Ministry of Transport's press release), or 3% of TIV. We expect more favourable incentives from the government which has set a national target for EVs and hybrid vehicles of 20% of TIV by CY30 and 38% by CY40. Meanwhile, the government will speed up the approval for charging stations. The number of proposed charging stations is currently at 4,477 (4,161 built to date) and this should more than double to 10,000 by end-CY25. —July 22, 2025 Main image: ptc
Yahoo
17-07-2025
- Automotive
- Yahoo
Malaysia vehicle market falls 6% in June
Malaysia's new vehicle market declined by almost 6% to 54,832 units in June 2025, from 58,142 units a year earlier, according to registration data released by the Malaysian Automotive Association (MAA). GDP growth in the country slowed to 4.4% year-on-year in the first quarter of 2025, from a downwardly revised 4.9% in the fourth quarter of 2024, reflecting slowing export growth and slightly weaker domestic consumption growth. Second-quarter growth is also expected to be weak. Malaysia's central bank cut its benchmark interest rate by 25 basis points to 2.75% at July 2025, the first cut since its last hike in May 2023, as it looks to stimulate domestic growth. In the first six months of 2025, the market declined by 5% to 372,636 units from a record high of 391,451 units in the same period last year, with light passenger vehicle sales falling by 3% to 347,084 units while commercial vehicle sales plunged by 21% to 26,552 units. Separate industry data showed that sales of battery electric vehicles (BEVs) increased by 61% to 17,143 units year-to-date, driven mainly by China's BYD Auto and its Denza brand with a combined 6,015 units, and the recently-launched Proton with 4,000 sales, while Tesla sold 2,400 units. Total vehicle production in the country fell by 10% to 392,264 units in the first half of the year. Market leader Perodua reported a 2% sales decline to 166,188 units year-to-date, slightly outperforming the overall market, with the Bezza and Axia being the country's two most popular models with 46,175 and 40,650 sales respectively. Proton's global sales fell by 2% to 72,156 units in the first six months of 2025, including 2,250 exports. The Saga was by far its best-selling model with 31,720 sales, followed by the Geely-based X50 compact SUV with 11,350 units, and the Geely-based S70 sedan with 9,345 units. UMW Toyota reported a 6% decline in first-half sales to 44,286 units, with the Vios its best-selling model with 13,390 sales, followed by the Hilux pickup truck with 11,320 units. "Malaysia vehicle market falls 6% in June" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Sinar Daily
06-07-2025
- Automotive
- Sinar Daily
Analysts see EV to continue to gain momentum in Malaysia
The EV segment remains a bright spot, up 58.5 per cent year-on-year for the year-to-date (January to May) and 69.3 per cent year-on-year in May, with 4,152 units registered. 06 Jul 2025 04:03pm Local brand Proton is on track to begin local assembly of the 7 at its new Tanjung Malim EV plant by year-end, while Perodua is preparing to launch its first EV (a B-segment hatchback) in the fourth quarter of 2025. Photo for illustrative purposes only - Canva KUALA LUMPUR - Despite softening car sales in Malaysia, analysts foresee electric vehicles (EVs) continuing to gain traction in the country, reported Xinhua. MIDF Research said in a report on Wednesday that electrification continues to gain momentum in Malaysia. Although overall total industry volume (TIV) is softening, government data as of May showed that the EV segment remains a bright spot, up 58.5 per cent year-on-year for the year-to-date (January to May) and 69.3 per cent year-on-year in May, with 4,152 units registered. It noted that local brand Proton is on track to begin local assembly of the 7 at its new Tanjung Malim EV plant by year-end, while Perodua is preparing to launch its first EV (a B-segment hatchback) in the fourth quarter of 2025. It also noted that EV charging infrastructure is expanding, with over 4,000 chargers now installed, though still short of the 10,000-unit year-end target. EV charging infrastructure is expanding, with over 4,000 chargers now installed, though still short of the 10,000-unit year-end target. Photo for illustrative purposes only - Canva TA Securities also said in its recent report that the EV momentum is expected to continue, with more models set to arrive in the second half of 2025 and into 2026, offering consumers greater accessibility and choice. Currently, consumers have access to more than 40 EV models, reflecting a rapidly expanding portfolio. TA Securities said that Chinese automakers such as BYD, Chery, Xpeng, and Geely continue to expand their footprint by offering feature-rich models at competitive prices. At the same time, premium brands like BMW, Mercedes-Benz, and Porsche are stepping up efforts to introduce their electric lineups, aiming to capture early ground in the luxury EV segment. Overall, the research house sees that the second-half automotive sales may see a temporary boost, particularly in EVs, as consumers look to secure current tax exemptions before they expire at the end of December 2025. This pull-forward demand could benefit brands with competitive EV offerings. However, it concurred that uncertainties surrounding the potential introduction of EV road tax may lead some buyers to hold off. It opined that the removal of the RM100,000 (US$23,767) price floor for imported EVs, which is also set to end in December 2025, is expected to attract more low-cost foreign models, intensifying price competition and squeezing margins. "While a short-term uplift is possible, the broader outlook remains cautious due to policy risks, affordability concerns, and heightened market competition," said the research house. Maybank Investment Bank also said in its recent report that EV-related investments began gaining traction in the first half of 2025 in Malaysia as the current exemptions on import and excise duties for completely knocked down (CBU) EVs, as well as restrictions on importing CBU EVs priced below RM100,000, are set to expire at end-2025. The research house opined that this momentum is expected to continue into the second half. - BERNAMA-XINHUA More Like This
