Auto players hit speed bump
Ho Chung Teng | 02 Feb 2018 00:30
The stronger ringgit, improving GDP, new mass-market models and a lower base in 2016 should have boosted last year’s TIV, but it fell 0.59% to 576,635 units from 580,635 units a year ago
Local automotive players, especially those in the luxury car segment, posted record sales last year, amid global excitement over a number of key pilot projects like autonomous driving and digitisation.

Riding on the back of gradually improving consumer sentiment, the companies are expected to report slightly better total industry volume (TIV) sales this year.

The positive developments and better investors’ sentiment led to the resurgence of many auto stocks, led by DRB-Hicom Bhd whose share price rose 40.98% to RM2.58 on Jan 25 from RM1.83 on Dec 29 last year. 

However, not all were as fortunate. Cycle & Carriage Bintang Bhd, distributor of Mercedes Benz, saw its share price dip 1.38% to RM2.15 on Jan 25 from RM2.18 on Dec 29 last year.

Despite the optimism, many believe the auto players are not out of the woods yet and may be in for a bumpier ride.