New vehicles to drive auto sector growth

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. -- BERNAMA