MIDF: National Automotive Policy could adversely impact auto sector

MIDF said the current landscape would alter if there were significant incentives for the new national car model in the form of taxes or barriers for non-nationals. — Bernama pic
MIDF said the current landscape would alter if there were significant incentives for the new national car model in the form of taxes or barriers for non-nationals. — Bernama pic

KUALA LUMPUR, June 20 — The upcoming National Automotive Policy (NAP) could bring about some uncertainties to the local automotive sector, as it could involve measures to support a potential third national car, according to MIDF Research.

The research house said although plans remain sketchy at this point, it stressed the current landscape would alter, if there were significant incentives for the new national car model in the form of taxes or barriers for non-nationals.

"There is also the issue of competing with the existing two national cars, positioned in the lowest segments of the market, which account for half of the total industry volume (TIV).

"News reports quoting government bodies have been indicating potential prototypes in the first half of this year, with a possible launch in 2020, though not much development has been announced so far,” MIDF Research said in its note today.

Meanwhile, the research house pointed out that Perodua’s TIV will hit another record this year at a forecast 241,000 units representing a six per cent year-on-year growth, driven mainly by the Aruz model. 

The launches of maiden SUVs by Perodua and Proton is currently driving meaningful improvement in market share of the national cars as these models plug an important gap in their model mix.

Proton’s X70 SUV was launched in December 2018, and Perodua’s Aruz SUV in January, at a price range of between RM100,000-RM124,000 and RM73,000-RM78,000 respectively.

Both models are well positioned to take market share off the non-national C-segment and B-segment sedan as well as the B-segment SUV. — Bernama

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