Perodua recorded a nine per cent month-on-month increase in August 2024, thanks to the strong performance of its two best-selling models, the Axia and Bezza, which are among the most affordable cars in Malaysia.

According to RHB Investment Bank analyst Syahril Hanafiah, production of the Axia surged by 14 per cent, while Bezza production saw an even more significant jump of 31 per cent in August. Together, these two models made up 57 per cent of Perodua’s total car production for the month.

“These two models have contributed significantly to Perodua’s success in August,” Syahril noted in a research report.

In addition to Perodua, Proton also saw an increase in production, with a modest four per cent rise. Among non-national manufacturers, Honda experienced an eight per cent boost in production after two months of decline, while Toyota saw a slight drop of two per cent of month-on-month output.

Syahril further explained that the Total Production Volume (TPV) in the automotive industry had outpaced the Total Industry Volume (TIV), indicating that outstanding orders were decreasing throughout the month.

“In the second quarter of 2024, the backlog of orders for major manufacturers seemed stable, which might be due to the lower TPV in that period,” Syahril added.

In August, TIV reached 71,162 units, representing a 2.3 percent decline compared to the same month last year. However, for the first eight months of 2024, TIV rose by 5.9 percent year-on-year to 533,301 units, with total production reaching 74,000 units.

Syahril expects TIV to soften in September due to temporary factory shutdowns for maintenance. “We anticipate that sales will stabilize in the second half of 2024, but overall, we may see an eight percent year-on-year decline.”

Despite this, Perodua posted the highest monthly sales in August, delivering 34,700 units, an 11.6 percent increase compared to last year.

Without the significant contribution from Perodua, Syahril believes TIV would have decreased by 13 percent year-on-year in August. The solid TIV performance in 2024 has been driven by passenger car sales, which rose by eight percent, while commercial vehicle sales dropped by 14 percent, possibly due to the removal of diesel subsidies.

As a result, RHB Investment Bank maintains a “neutral” outlook for the automotive sector, with a 2024 TIV forecast of 790,000 units.