KUALA LUMPUR: RHB Investment Bank Bhd (RHB IB) is expecting more new electric vehicle (EV) offerings and new faces such as Ora Good Cat by Great Wall Motors to be seen on the road in 2023.

BMW is slated to offer the all-electric i7 and i5 EVs and XM plug-in hybrid, and Bermaz Auto Bhd will be launching the new Peugeot e-2008 and Kia PBV1 EVs next year, while Perodua will unveil its first hybrid EV in 2024 and Proton is expected to launch its first EV in 2027, it said in a note today.

On supply chain constraints, the investment bank said the issue is no longer a concern as globally, the auto chip shortage continues to abate, especially after the easing of Covid-19 restrictions in China.

“Domestically, most players are able to secure the semiconductors and components needed.

“As a case in point, the national marques have been producing at almost full capacity in recent months and will likely continue doing so in the coming months as they rush to fulfil the sales and service tax (SST)-exempt orders before end-March 2023,“ it said.

RHB IB said after the SST exemption period ended on June 30, 2022, automotive orders have been gradually recovering month-on-month as consumers adapt to the SST-inclusive prices.

“We see this as an encouraging sign and expect new model launches and facelifts in 2023 to continue fuelling new orders.

“However, we continue to anticipate slower economic growth and possible excise duty reforms as potential dampeners to auto demand,“ it said.

For 2023, it expects the total industry volume to soften to 600,000 units from 700,000 units projected for 2022, premised on slower economic growth next year and the absence of an SST exemption.

As such, RHB IB has maintained its ‘neutral’ call on the automotive sector. – Bernama