KUALA LUMPUR, Aug 19 (Bernama) -- Hong Leong Investment Bank Bhd (HLIB) expects national original equipment manufacturers (OEMs) to sustain their sales momentum in the second half of 2026 (2H 2026).
It said in a research note today that it expects non-national OEMs to remain under pressure amid intensifying competition in pricing and enhanced product offerings.
“We maintain our overweight call on the automotive sector, underpinned by the strong performance of national OEMs, Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Proton Holdings Bhd.
“We expect Perodua to sustain its sales volume in 2026, supported by its strong market position in the entry-level and affordable segments.
“Proton is also seeing strong sales growth, driven by robust demand for its newly launched Saga replacement model and affordable electric vehicle/plug-in hybrid electric vehicle (PHEV) models,” it said.
Yesterday, the Malaysian Automotive Association (MAA) said total industry volume (TIV) rose five per cent year-on-year (y-o-y) to 73,615 units in July 2026 from 70,057 units a year ago, mainly due to a rise in monthly production volume and sales.
HLIB said the TIV for the first seven months of 2026 remained resilient at 459,000 units, a 2.7 per cent y-o-y growth.
Key OEMs that recorded strong growth y-o-y include Proton, Jetour and Mazda, HLIB said
July EV sales reached 6,900 units, accounting for 9.4 per cent of TIV, largely driven by Proton and BYD.
HLIB raised its TIV assumptions to 800,000 units from 780,000 units, driven by OEMs’ strong performance.
Its top picks are MBM Resources Bhd with a target price (TP) of RM7.10 and SIME, with a TP of RM2.85, given its strong exposure to Perodua’s sustained sales volume.
Meanwhile, Kenanga Investment Bank Bhd expects August 2026 sales to remain strong in anticipation of a Perodua boost as it cuts the Axia price by up to RM4,700. It is neutral on the sector.
Kenanga said its 2026 TIV forecast of 800,000 units matches MAA’s forecast, driven by the discounts/rebates trend, delays in new open market value regulation, a flood of localised Chinese vehicles, and value-for-money offerings.
“Year-to-date TIV of 459,000 units was within expectations,” it added.
Its top picks are Bermaz Auto Bhd and SIME, with TPs of RM1.22 and RM2.75, respectively.
-- BERNAMA