KUALA LUMPUR: Kenanga Investment Bank Bhd (Kenanga IB) has projected a total industry volume (TIV) of 805,000 units for the automotive sector in 2025, reflecting a slight rise from the anticipated 800,000 units in 2024. This forecast is underpinned by a number of factors, including steady demand for affordable vehicles and emerging trends in fuel-efficient technology.
According to BERNAMA News Agency, Kenanga IB attributes the projected increase to a robust backlog of orders for Perodua vehicles, which remains above 90,000 units. The strong demand is fueled by consistent monthly deliveries and the introduction of new models that replace older generations. The trend of mid-market buyers shifting towards fuel-efficient vehicles, driven by anticipated changes in fuel subsidy policies, is also expected to bolster the sector. This includes a growing preference for hybrid and battery-electric vehicles (BEVs), as well as the rising market presence of Chinese automakers through localized production.
Kenanga IB anticipates that the National Automotive Policy (NAP) will soon undergo a mid-term review, which is likely to emphasize hybrid vehicles as a critical component in reaching national targets for electric and hybrid vehicles. The NAP aims for these vehicles to account for 15 percent of TIV by 2030 and 38 percent by 2040. Additionally, Kenanga IB projects a strong performance for Hong Leong Industries Bhd, which is expected to benefit from high motorcycle demand, potentially achieving 680,000 units in 2025. The company’s Yamaha brand is set to capture a significant market share, particularly among the B40 and M40 consumer segments.
Further supporting the automotive sales forecast are government incentives for new BEVs, including SST exemptions and facilities for completely built-up (CBU) units until 2025, and completely knocked-down (CKD) units until 2027. Kenanga IB expects these incentives to continue, alongside a government push to accelerate the installation of charging stations. The current number of proposed charging stations, 4,235 (with 3,354 already built), is anticipated to more than double to 10,000 by the end of 2025.
Kenanga IB also highlighted that models from Perodua and Proton have surpassed non-national brands in sales, owing to improvements in specifications and features. These enhancements include digital speedometers, fuel-efficient engines, responsive gearboxes, advanced driver assistance systems, multiple airbags, and anti-theft auto-locking systems.
On the stock market, MBM Resources and Hong Leong Industries have emerged as top gainers on Bursa Malaysia. By midday, MBM Resources saw an increase of six sen, or 1.0 percent, reaching RM6.06, while Hong Leong Industries rose by 12 sen, or 0.71 percent, to RM14.28.