Kenanga Research: Proton is on the right track

Kenanga Research: Proton is on the right track

Proton continues to dominate the automotive industry by being the only car brand that recorded higher sales growth, supported by its popular Proton X70, as well as its face-lifted Proton Saga, Iriz and Persona.

This is on the back of a neutral rating being maintained on the automotive sector by Kenanga Research.

The research house, in a note today, said the automotive sector’s month-on-month (MoM) performance was flat, with only Proton recording significantly higher sales MoM growth.

However, the sector’s year-on-year (y-o-y) sales declined, as the market waits for a better promotional campaign.

“According to the Malaysian Automotive Association, total industry volume for August 2019 registered sales of 51,148 units. Y-o-y sales recorded a drop but was attributed to the high-base effect from the historic tax holiday from June 1 to Aug 31, 2018,” it said.

It added that only Perodua recorded positive y-o-y growth due to a lower base last year arising from supply constraint for its popular all-new Myvi.

The research note also said that the national marques continued to be in the lead as Perodua continued to lead the pack with a higher market share of 41%, compared with last year’s eight-month performance (8M18) at 37%.

“This was followed by Honda and Proton at the same position. Honda registered a lower market share of 15% (8M18: 18 percent) with a lower sales growth (-21% y-o-y) as consumers held back purchases, expecting new models in the second half this year, which were delayed due to pricing approval issues,” it said.

Meanwhile, Proton, which recorded a 37% growth y-o-y, gained higher market share of 15% (8M18: 11 percent) owing to the higher delivery of the all-new Proton X70, and also supported by the existing face-lifted line-ups.

As of 10.40am, the automotive-related counters; BAuto added two sen to RM2.29, MBM shed one sen to RM4.10, while Tan Chong and UMW were flat at RM1.37 and RM5.06, respectively.

Bernama

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