KUALA LUMPUR (Jan 25): Malaysia’s automotive total industry volume (TIV) hit a record high of 720,658 units in 2022, breaking the previous record of 666,598 units set in 2015.
RHB Investment Bank Bhd said the total production volume (TPV) also rose to a record high of 702,000 units.
“The strong numbers were driven by pent-up demand, new launches, the sales and service tax (SST) exemption which prompted customers to rush to place orders, improved production and recovering supply chains.
“The 2022-high TIV of 77,000 in December brought the total TIV for the year to 720,658 units, an increase of 42% year-on-year (y-o-y), breaking the previous record set in 2015,” it said in a research note on Wednesday (Jan 25).
The investment bank also said that the TIV in 2022 was also higher than their forecast of 700,000 and Malaysian Automotive Association's (MAA) 630,000 estimate.
“As for this year, we expect earnings to decline from a high base due to softening sales and as forward valuations are at or above historical averages.
“Downside risks consist of persistent macroeconomic headwinds that may further soften orders, higher-than-expected interest rates, and a resurgence in supply chain constraints. Upside risks include stronger-than-expected orders and favourable foreign exchange movements,” it said.
Meanwhile, MIDF Amanah Investment Bank Bhd said that 2022’s record TIV was largely driven by Perodua, which registered its highest-ever TIV of 282,029 units (+48% y-o-y).
“As for other key brands, their performance was still relatively strong in 2022, albeit not exactly ahead of their all-time highs.
“We expect this year’s TIV to remain elevated at 678,000 units and do not rule out the possibility of TIV re-testing the last record, given the large backlog orders and still strong new booking momentum," it added.