Automotive - Car sales corrected until May 2024

Automotive - Car sales corrected until May 2024 The national four-wheeled vehicle industry has shown no signs of improving performance. Quoting the latest data from the Association of Indonesian Automotive Industries (Gaikindo), wholesale sales (factory to dealer) of national cars fell 21% year on year (YoY) to 334,969 units in January-May 2024, from the previous 423,771 units. National car retail (dealer to consumer) sales also corrected 14.4% yoy to 361,698 units in January-May 2024, from the previous 422,514 units. On a monthly basis, national car wholesale sales were able to grow 46.5% month to month (mtm) from 48,637 units in April 2024 to 71,263 units in May 2024. Likewise, national car retail sales rose 22.7% mtm from 58,788 units in April 2024 to 72,137 units in May 2024. (Source: Kontan) Comment : In all, Jan-May 24 4W at 334,969 units sales came in within our 5M24F for car sales of 331,994 units. On a monthly basis, May24 4W sales (71,263 units) arrive above our May24F for car sales by 4.4% (68,238 units). Gaikindo kept its ‘24F car sales unchanged at 1.1 million. We expect better purchasing power and stronger confidence in the following months, which will have a positive impact on car sales volume. Our 24F/4W sales for the sector are around 1,056,990 units, with Astra products continuing to dominate the landscape competition at 55.4%. Maintain our overweight stance on the automotive sector.