KUALA LUMPUR (Jan 22): Hong Leong IB Research has maintained its “Neutral” rating on the automotive sector and said it expects 2015 total industry volume (TIV) to remain flat at 663,000 units (-0.4% y-o-y), due to consumer uncertainties towards GST and slower economy growth.

In a note Thursday, the research house said strong December TIV at 64,700 units (+6.9% y-o-y; +16.9% m-o-m), setting a new record year 2014 at 666,500 units (+1.6% y-o-y).

It said 2014 TIIV growth was mainly driven by aggressive new model launches and heavy promotions by foreign OEMs.

The research house said Perodua (UMW and MBM) defended its 29.3% market share with 195,600 sales (-0.3% y-o-y) in 2014 due to successful Axia launch, while Proton (DRB-Hicom Bhd) suffered sales drop of 16.6% y-o-y to 115,800 units, due to heavy competitions and slower than expected Iriz sales.

“Toyota (UMW) and Honda (DRB) reported stronger yoy sales with higher market share at 15.3% and 11.6% respectively, from new model launches. Nissan (TCM) sales suffered with lower market share at 7.0% due to heavy competitions from Toyota and Honda.

“Maintained Neutral on automotive sector with top picks: MBM Resources Bhd (TP: RM4.00),” it said.