Proton expected to zoom past Honda in year-to-date market share

PETALING JAYA: Proton is expected to overtake Honda in the year-to-date (YTD) , helped by volume-oriented models like the Persona and Iriz, according to AmInvestment Bank.

It said that based on a media report recently, Proton registered a total sales volume of 8,600 units in July, translating into a market share of 16.5% for the month and 15% on a YTD basis.

The total sales for Proton for the first seven months of 2019 (7M19) stood at 52,200 units, recording a growth of 48% year-on-year.

“While we have yet to receive the official MAA (Malaysian Automotive Association) numbers for the other brands and the total TIV (total industry volume) breakdown, it is highly likely that Proton has ousted Honda and claimed its position as the runner-up in YTD market share.

With the sustained momentum and deliveries from volume-oriented models like the Persona and Iriz, we strongly believe that Proton will finish second by the end of 2019, behind the national titan Perodua,“ it said in a report today.

Perodua, meanwhile, posted a total sales volume of 19,100 units in July. It is maintaining its of 235,000 units for 2019.

“We strongly believe that the national marques’ sales volume will continue to be the key driver of the local automotive space.

“With the recent launch of the Saga (latest version), we believe that Proton will be able to maintain its sales volume momentum through the remaining months of the year. We also look forward to the upcoming X70 CKD in November, where DRB-Hicom’s management has guided that there will be a price reduction for the popular SUV,” said AmInvestment Bank.

July 2019 TIV rose 20% mom but dipped 26% yoy to 50,900 units. The year-on-year decrease in July this year was due to a high base from 2018’s tax holidays. Cumulatively, 7M19 TIV was down 3% to 347,200 units from 358,100 units in 7M18.

“YTD TIV was within our forecast of 603,000 units for 2019, accounting for 58% of our full-year estimates,” it added.

AmInvestment Bank has ‘buy’ calls on Bermaz Auto Bhd, DRB-Hicom Bhd, MBM Resources Bhd, Pecca Group Bhd, Sime Darby Bhd and Tan Chong Motor Holdings Bhd while it is underweight on APM Automotive Holdings Bhd.

“We are now upgrading the automobile sector to overweight based on our recent upgrade on Sime Darby to buy. We believe that the stock’s valuation is undemanding at current levels and we are now recommending a buy on weakness of the . We now have six buys out of the eight stocks under our automobile sector coverage,” AmInvestment Bank said.

Source: The Sun Daily

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