Malaysia car sales remain depressed

Kuala Lumpur

ROBUST GDP (gross domestic product) numbers notwithstanding, Malaysia's once vibrant automotive sector remains depressed by continued weak consumer sentiment and stricter hire-purchase guidelines, and underweight by analysts for a lack of catalysts.

Despite two strong quarters of GDP growth of 5.6 and 5.8 per cent - first half of 5.7 per cent - sales of the big-ticket item remain tepid. And with more than half the year gone, analysts see little to excite.

"We expect minimal growth to be the norm for auto players in FY17 as there are no major catalysts to help lift numbers," said Alliance Research in a monthly strategy report. "The continued weak consumer sentiment and tighter hire-purchase control…