KUALA LUMPUR, Aug 20 (Bernama) -- There are mixed views on how the automotive sector would perform in the second half of 2014.
Maybank Investment Bank Research said the sector is expected to pick up speed for the period, driven by major launches, which would spur buying interest.
It said the soon-to-be launched Perodua Axia,the Proton GSC, B-segment Mazda2 and C-segment Mazda3, coupled with a seasonally stronger second half, would result in an upside for the 2014 total industry volume forecast of 675,000.
"We note that the auto players are now focused on the more economical cars in view of the rising cost of living and implementation of the Goods and Services Tax in April next year," it said in a research note Wednesday.
The investment bank noted though, that the recent hike in the overnight policy rate by 25 basis points could negatively pressure vehicles sales, especially the A-segment market in the second half.
Despite the positive catalysts mentioned earlier, Kenanga Research however, sees the sales momentum for the industry slowing down in the second half due to the high base in the same period last year and slower consumer spending amid the rising cost of living.
"On the earnings side, with ongoing stiff competition and an unfavourable exchange rate, we reckon the earnings growth for our tracked automotive companies this year could be kept in check," it said in a different note.
On the sales breakdown, the research house believes that the non-national segment would continue to gain traction, on the assumption of more completely knocked down Energy Efficient Vehicles (EEV) being introduced.
Maybank Investment Bank Research said the sector is expected to pick up speed for the period, driven by major launches, which would spur buying interest.
It said the soon-to-be launched Perodua Axia,the Proton GSC, B-segment Mazda2 and C-segment Mazda3, coupled with a seasonally stronger second half, would result in an upside for the 2014 total industry volume forecast of 675,000.
"We note that the auto players are now focused on the more economical cars in view of the rising cost of living and implementation of the Goods and Services Tax in April next year," it said in a research note Wednesday.
The investment bank noted though, that the recent hike in the overnight policy rate by 25 basis points could negatively pressure vehicles sales, especially the A-segment market in the second half.
Despite the positive catalysts mentioned earlier, Kenanga Research however, sees the sales momentum for the industry slowing down in the second half due to the high base in the same period last year and slower consumer spending amid the rising cost of living.
"On the earnings side, with ongoing stiff competition and an unfavourable exchange rate, we reckon the earnings growth for our tracked automotive companies this year could be kept in check," it said in a different note.
On the sales breakdown, the research house believes that the non-national segment would continue to gain traction, on the assumption of more completely knocked down Energy Efficient Vehicles (EEV) being introduced.
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