Kenanga: Perodua’s D66B & EV Hot Pick For 2025, 2024 TIV Raised By 4% To 740K Units

Wan Mustaqim Bin Wan Ab Aziz, equity analyst at Kenanga Research, stated that the business has increased its 2024 total industry volume (TIV) projection for the automotive sector by 4% to 740,000 units from 710,000 units. This aligns with the Malaysia Automotive Association's (MAA) forecast as well.

In a recent note, Kenanga Research states that the surge of new electric vehicle (EV) launches, as well as recent EV road tax reduction, are projected to increase EV demand. Currently, all EVs are imported at a regulated floor price of RM100,000 and distribution limits every month.

While the inexpensive car segment would most likely remain stable, the mid-market class may experience issues when fuel subsidies are rationalised. According to Wan Mustaqim, consumers in this segment may choose EVs to decrease gasoline costs, potentially establishing a two-speed market by 2024.

The industry's profitability prognosis remains robust, bolstered by a booking backlog of 200,000 units as of the end of May 2024, with more than half being new models. This trend is likely to continue through 2024, thanks to a robust slate of new launches.

Kenanga also stated that Sime Darby-owned Perodua plans to sell and produce 330,000 and 334,000 vehicles in 2024, respectively. Due to high demand for cheap vehicles, the 2024 sales target may be exceeded.

In 2025, an exciting year is predicted with the arrival of the all-new Perodua D66B Hybrid and a locally built Perodua EV. They are slated to be priced between RM50,000 and RM100,000, with an initial sales target of 10,000 units.

Perodua's plants, which have a total capacity of 320,000 units, intend to enhance output through improved productivity and overtime. Perodua's yearly sales forecast remains at 340,000 units in both 2024 and 2025.

Both Sime Darby and Perodua are committed to a gradual transition to EVs in the Malaysian market. Sime Darby reported strong market responses for models like the BMW IX EV, Toyota Corolla Cross hybrid, BYD Atto 3 EV, and BYD Seal EV. They recently introduced the BMW i5 limited edition and 520i, with plans to launch the BYD BAO 5, Toyota BZ4X EV, and Perodua EV in 2025.