Lower total industry volume (TIV) in the first quarter of 2026 (1Q26) weighed on the automotive sector’s earnings, although the impact was partly cushioned by the stronger ringgit, analysts say.
Among the major players, Sime Darby Bhd saw its motor segment’s core profit before interest and tax fall 32% quarter-on-quarter to RM143mil in the three months ended March 31, 2026.
Analysts said the sequential weakness was largely expected, in line with seasonally weaker car sales.
In 1Q26, the automotive sector’s TIV fell 3% year-on-year (y-o-y) to 182,113 units, from 188,143 units recorded in the corresponding period last year.
However, sector TIV rebounded 13.6% month-on-month (m-o-m) in April 2026 to 72,113 units, driven by stronger passenger vehicle and commercial vehicle sales.
According to CIMB Research, the rebound in April industry sales was supported by a recovery in production volumes at national carmakers and continued demand for new vehicle launches.
Total production volume surged 46.7% m-o-m to 70,611 units, mainly driven by a 56.3% increase in Perodua’s output and a 48.5% jump in Proton’s production.
Source: thestar.com.my