PETALING JAYA: Proton Holdings Bhd was the only car company to register positive year-on-year sales growth in the first quarter of this year despite negative impact from the Covid-19 pandemic on the local automotive sector.
According to MIDF Research, Proton’s January to March 2020 sales rose 19% to 21,757 units from 18,281 units in the previous corresponding period, with its market share growing to 20.4% in the first three months of this year compared with 12.8% last year.
Nevertheless, Proton’s sales dropped 41% year-on-year to 3,277 units in March, mainly due to all sales outlets being shut as a result of the movement control order (MCO) that came into effect on March 18.
Affin Hwang Capital noted that the national car market, comprising Proton and Perodua, were not spared by the Covid-19 pandemic.
“Proton’s March 2020 total industry volume (TIV) came in at 3,300 units (a 47% year-on-year drop).
“Unfortunately, Perodua’s March sales volume plunged to 8,600 units (a 63% year-on-year fall), by far the lowest monthly sales volume on record.
“Overall, the national brands’ combined first quarter 2020 market share held firm at 62.7%, compared with 55.2% in the previous corresponding period.
On the non-national car segment, Affin Hwang Capital said Honda was the biggest winner, its March sales rising 87% month-on-month to 3,300 units.
Year-on-year, the Japanese carmaker’s sales plunged 62% year-on-year on a low base effect, due to revised duty regulations and favourable response for the newly launched Civic and Accord.
“Despite the better March sales performance, Honda’s first quarter TIV was still lower by 50% year-on-year at 11,000 units.
“The other Japanese brands also experienced weaker sales in the first quarter of 2020.”
UOB Kay Hian meanwhile said it foresees further compression in carmakers’ margins in 2020, as the ringgit continues to weaken against the dollar.
“While Bermaz Auto Bhd (BAuto) should be cushioned from a weakening ringgit against the dollar, it would be affected by fluctuation of the ringgit against the yen as the bulk of its cost of goods sold is in yen.
“Our analysis shows that every 10 sen weakening in the ringgit against the yen reduce BAuto’s 2020 to 2022 earnings by 1% and 2%. Similarly, a 1% weakening of the ringgit against the dollar will reduce UMW’s Holdings Bhd’s 2020 to 2022 earnings by 2% and 3%.”
Year-to-date March 2020, total vehicle sales fell 26% to 106,428 units from 143,036 units in the previous corresponding period, according to the Malaysian Automotive Association.
The MAA has also revised downwards its 2020 TIV forecast to 400,000 units from 607,000 units previously, due to negative implications of the Covid-19 pandemic which has severely affected business operations.
