Auto Sector 2QCY25 Earnings Mixed, TIV Tracks Within Expectations

KUALA LUMPUR, Sept 23 — The Malaysian automotive sector recorded mixed second-quarter results for CY2025, though overall performance remained within expectations, according to MBSB Research. The Malaysian Automotive Association (MAA) reported total industry volume (TIV) of 73,041 units in August, up 4.3% month-on-month, supported by new model launches, Merdeka promotions, and improved stock availability. Year-to-date TIV fell slightly to 516,862 units (-3.8% yoy), aligning with 65% of full-year projections.

Auto Sector expectations

Among automakers, MBM Resources delivered results in line, aided by after-sales strength and higher Perodua contributions. Tan Chong’s losses continued, with Vietnam operations offering some relief, while Bermaz Auto underperformed due to weaker margins and ageing models. MBSB Research noted the BUDI95 targeted fuel subsidy, effective September 30, would modestly support TIV, with demand expected for fuel-efficient cars.

Overall, MBSB maintained a NEUTRAL sector call, projecting CY25F TIV at 792,000 units (-3% yoy), in line with MAA’s 780,000 forecast.

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