Kuala Lumpur:CGS-CIMB Securities Sdn Bhd (CGS-CIMB) expects total industry volume (TIV) to be lower by eight per cent in the fourth quarter of 2022 (Q4 2022) due to macro headwinds which dampened booking sentiments.
In a note Thursday, it said the softer TIV forecast was in view of delays in component deliveries due to the ongoing chip and component shortages impacting vehicle deliveries in the near term; higher interest rate environment; and weakening consumer sentiment amid risks of a potential slowdown in the domestic economy.
It noted that in October 2022, the TIV fell by 9.8 per cent month-on-month (m-o-m) to 61,002 units, as sales in both the passenger vehicle (PV) and commercial vehicle (CV) segments slipped by 9.3 per cent m-o-m and 14.4 per cent m-o-m, respectively.
“We attribute the weaker m-o-m TIV in October 22 to the normalisation of order backlog following a surge in TIV delivery in Q3 2022.
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“Meanwhile, the ongoing semiconductor chip and component shortages are still dragging the domestic automotive industry supply chain down as total production volume fell by 15.6 per cent m-o-m,” it said.
It said for the first 10 months of 2022 (10M2022), TIV rose 51 per cent year-on-year (y-o-y) to 577,800 units, driven by higher sales in the non-national segment (+60.5 per cent y-o-y), led by Japanese marques, while both Perodua and Proton delivered 44.1 per cent y-o-y TIV growth during the same period.