The December 2022 Total Industry Volume (TIV) of the automotive sector was much higher than expected, reaching a new record of 76,657 units, an increase of 18% compared to the same time the previous year.
This brought the full year TIV for 2022 to a new record of 720,658 units, an increase of 42% compared to the previous year.
The Singaporean man registered the longest bicycle race in the world! An epic record indeed that enters the Singapore Book of Records MORE
Perodua at full speed
The record TIV was mostly driven by Perodua, which had its highest ever TIV of 282,029 units, an increase of 48% compared to the previous year. Despite the strong performance, the TIV for the first quarter of 2023 is expected to remain elevated and could even break the record set in 2022.
The sector's return on equity is expected to remain at 12% and dividends are expected to remain attractive at an average yield of 5%.
Additionally, sector valuations are currently undervalued and the Ringgit's strength is providing a boost by lowering import costs. - MIDF