MIDF: Perodua’s TIV to grow 7.6% in 2021


PERUSAHAAN Otomobil Kedua Sdn Bhd’s (Perodua) total industry volume (TIV) is projected to grow at 7.6% year-on-year (YoY) to 237,000 units this year driven by new launches, according to MIDF Amanah Investment Bank Bhd.

The research house said the TIV target is slightly more conservative than the country’s second national carmaker’s own 2021 target.

It added that Perodua’s 2021 target volume of 240,000 vehicles, which is expected to test its previous record high in 2019, is likely factored by the new compact SUV, Ativa, which was launched on Wednesday.

“According to the management, Perodua has collected 5,000 bookings for Ativa since Feb 19 against its target sales of 3,000 units per month.

“This would be higher than the Aruz which was 1,875 per month, but lower than the Bezza’s sales (4,750 per month), potentially making the Ativa to be Perodua’s fourth-largest volume generator,” MIDF stated in a report yesterday.

MIDF noted that key beneficiaries of the Ativa launch and Perodua’s strong TIV projection are UMW Holdings Bhd and MBM Resources Bhd, which own 38% and 22.5% stake in Perodua respectively.

It also added that MBM Resources’ Pero- dua’s dealership and parts manufacturing businesses are spillover beneficiaries of Perodua’s TIV growth.

The research house has maintained its “positive” call on the automotive sector and has ‘Buy’ calls on both UMW Holdings and MBM Resources with unchanged target prices of RM4.30 and RM4.10 respectively.

Perodua Ativa was recently launched with prices starting from RM61,500 for variant X on-the-road before insurance in Peninsular Malaysia; RM66,100 for variant

H and RM72,000 for the top variant AV. MIDF noted that in terms of market segment price, the Ativa sits between the Alza and the Aruz makes and it is also 22% to 30% cheaper than larger competitor, the Proton X50.

The Ativa is also termed as one of the most affordable Level 2 autonomous-certified vehicles available in the market.

It is 95% localised with Malaysian engineers having been involved in the design and technology development of the model.