Malaysian automotive sector likely to see real rebound only in 2022
DESPITE the Malaysian Automotive Association (MAA) reported a monthly rebound of almost 150% in August’s total industry volume (TIV) to 17,500 units (-68% year-on-year [yoy]), analysts are generally wary of the outlook of the automotive sector.
Retaining its “neutral” stance on the sector, RHB Research foresees downside risks to the sector’s recovery which include persistent shortages of key components and delays in new model launches.
“With the mutating COVID-19 virus, we cannot rule out further rolling lockdowns ahead thereby posing a downside risk as well,” cautioned analyst Eddy Do Wey Qing in a sector update.
“Other downside risks include the tightening of bank approval for car financing and sharp weakening of the ringgit. On the contrary, upside risks include easing of supply chain disruptions, stronger-than expected demand for new veh