KUALA LUMPUR (July 19): The upcoming e-invoicing compliance, starting Aug 1, could impact car sales, as it may make it difficult for buyers to secure "full loans" from sales agents who have historically inflated invoices, according to TA Securities in a note on Friday.
This system will require all invoices to be submitted directly to the Inland Revenue Board via the e-invoice portal, reducing opportunities for invoice mark-ups.
"We maintain our 'neutral' recommendation for the sector. Despite the introduction of new models, facelift versions, and new variants, forthcoming car sales might be influenced by declining consumer sentiment, amid the implementation of the targeted fuel subsidy scheme," said the research firm.
TA Securities' 2024 total industry volume (TIV) forecast remains at 700,000 units, a 12.5% year-on-year (y-o-y) decline.
Its top picks in the sector include Bermaz Auto Bhd (KL:BAUTO) with a target price (TP) of RM2.74, Sime Darby Bhd (KL:SIME) with a TP of RM2.85, and MBM Resources Bhd (KL:MBMR) with a TP of RM4.70.
TA Securities further cited the Malaysian Automotive Association as reporting a 17.2% month-on-month decline in TIV to 58,000 vehicles in June, the lowest monthly TIV of the year so far.
Y-o-y, TIV fell by 7.3%, although the year-to-date (YTD) total had reached 390,300 units, up 6.6% from the previous year. This growth was driven by a 9.2% increase in the passenger car segment to 356,900 units, while the commercial vehicle segment dropped by 15.3% to 33,400 units.
Perodua led national marques with a 9.6% YTD growth, with 169,800 units sold, while Proton saw a minor 5.2% decline to 61,400 units.
The combined market share of national car brands remained stable at 67.8%.
In the non-national car segment, Honda marked a 16.3% growth to 39,200 units, leading the segment with an 11% market share, followed by Toyota’s 9.3% and Mazda’s 2.3%.
Hybrid and electric vehicle (xEV) sales saw robust growth, with 22,500 units sold in the first half of the year.
EVs alone increased by 112% y-o-y, with approximately 10,700 units registered, including 3,100 Tesla vehicles.
However, the total of 2,585 EV chargers installed still fell short of the government's target of 10,000 by 2025.