AmInvestment Research is maintaining its overweight stance on the auto sector with an unchanged total industry volume (TIV) projection of 575,000 units for 2021. In its research note on Wednesday, it expects the strong sales volume momentum to sustain throughout 1H2021, bolstered by the extension of the sales and service tax (SST) exemption from Jan 1 until June 30,2021.
“We believe that the SST exemption will continue to spur buying interests for passenger vehicles, especially the national brands Proton and Perodua, ” it said. In February 2021, the auto sector recorded an improved TIV of 42,800 units (+30% MoM, +4% YoY), mainly driven by a major improvement in footfalls to showrooms after the lifting of the MCO for most states nationwide.
“We expect March 2021 TIV to be higher MoM supported by the resumption of the Road Transport Department’s full services for all types of vehicle transactions. “We understand that the Proton B-segment X50 model has exceeded 50,000 booking units as at end-February, with 8,200 units already delivered to customers.
“We gathered from our channel checks that the waiting period for the X50 is more than six months, an indication of how well-received the model is locally. As of now, the global chip shortage issues have not affected both SUVs, ” it said.
AmInvest Research noted Proton’s market share soared to a seven-year high at 27.3% in February, resulting in a runner-up YTD market share of 23.3%, behind Perodua’s 44.3%. Proton has introduced its sales volume target for 2021 at 132,000 units.
Source: The Star
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