Automotive - New 4W sales in Mar24: highest in the 1Q24

Automotive - New 4W sales in Mar24: highest in the 1Q24 Sales of new cars in Indonesia in March 2024 were recorded at 74,724 units based on wholesale data from the Association of Indonesian Automotive Industries (Gaikindo). March's record was the highest in the first quarter after previously selling 69,647 units in January and 70,698 units in February. Monthly sales at the beginning of this year increased, but compared to last year's performance, they decreased. In the first quarter, total new car sales were 215,069 units, which is down 24 percent from the same period in 2023 of 282,125 units. Market leader Toyota experienced a sales correction in March, which fell to 21,142 units from February's 23,525 units. Other data shows that the trend in domestic car production is shrinking, namely 89,900 units in March from the previous 98,714 units in February and 106,206 in January. (Source: CNN Indonesia) Comment : We expect to see higher monthly sales in the following months and hence will make 1H24 4W sales grow higher year over year. We forecast ‘24F car sales to reach at least the FY23 figure. A potential lower benchmark rate should become an additional catalyst, in our view. Maintain our OW stance for the automotive sector.