KUALA LUMPUR, June 20 (Bernama) -- The total industry volume (TIV) for the automotive sector is expected to grow in the ensuing months, driven by new vehicle launches.
OSK Research said the growth would also be supported by a boost in the entry-level segment, which is expected to pick up pace ahead of the upcoming festive season in the third quarter.
"In all, the growth numbers will perk up due to the low base effect caused by last year's earthquake in Japan and the devastating floods in Thailand," it said in a research note today.
OSK however maintained its "neutral" call on the sector, as the macro picture for the automotive sector remain cautious and the demand upside is expected to be marginal.
"Our forecast was based on the replacement cycle for new vehicles that was expected to boost, has peaked, and bankers becoming more stringent in approving loans due to tightening on lending," it added.