Malaysia's Automotive Sector Seen Growing 5.0 PCT in 4Q 2025

KUALA LUMPUR, Nov 20 (Bernama) -- Malaysia’s automotive sector is projected to record a 5.0 per cent quarter-on-quarter increase in sales volume in the fourth quarter of 2025 (4Q 2025), said CIMB Securities Sdn Bhd.

The performance is supported by new model launches from national brands and last-minute, completely built-up electric vehicle (EV) purchases in the November-December period, it said in a note on Thursday.

It said several national car brands would likely help sustain demand in 4Q 2025 and deliver a carryover effect into 2026.

“Proton recently introduced the 2026 Saga MC3 and e.MAS 5 in early November and has reportedly secured around 10,000 bookings for each model. Perodua is also expected to launch its first EV by the end of November,” it said.

The securities firm said it maintains a “Neutral” rating on the sector given the subdued growth outlook amid intensifying market competition.

“The sector is currently trading at 10.0 times weighted-average 2026 price to earnings, which is near one standard deviation below its five-year mean of 11.6 times.

“While this valuation discount reflects muted earnings growth prospects in a highly competitive environment, the sector continues to offer attractive dividend yields of 6.8 per cent to 7.0 per cent for 2025-2026,” it said.

The firm said key catalysts for the sector include the strengthening of the ringgit against the US dollar and Japanese yen, interest rate cuts, and supportive government policies to stimulate domestic demand.

“Downside risks to our call include further depreciation of the ringgit versus the US dollar and Japanese yen, potential interest rate hikes, and unfavourable policies such as the introduction of open market value assessments, which could raise the average selling prices of new vehicles,” it added.

-- BERNAMA