Analysts Positive on Malaysian Automotive Sector

Analysts are positive on the Malaysian automotive sector, with expectations of strong momentum in the second half of 2017 (2H17), following higher total industry volume (TIV) in August. "The eight months 2017 TIV sales volume has achieved 67% of our 2017E TIV sales of 592,000. We believe 2H17 momentum will likely remain strong," Affin Hwang Capital said in its report. 

The Malaysian Automotive Association (MAA) reported automotive sales of 51,700 units for August, reflecting a 6.5% month-on-month growth. Year-to-date, automotive sales hit 384,700 units, growing 3.9% year-on-year. MIDF Research said the latest TIV is still well above its forecast growth of 2.7% year-on-year to 596,000 units, and sees possibilities of further upside to its target.