Tesla Will Not 'Disrupt' the Malaysian Automotive Industry

<p>&nbsp;Tesla's presence in Malaysia is seen not to disrupt the local automotive industry, according to Kenanga Research.</p><p><br /></p><p>The research firm maintains an 'overweight' rating on the automotive sector, despite Tesla's electric vehicle (EV) entry being well received in the country.</p><p><br /></p><p>This is because more than 70% of vehicles sold in the country have a price tag of less than RM100,000, including almost 40% under RM50,000.</p><p><br /></p><p>Therefore, it is seen that it will not affect the demand for local vehicles.</p><p><br /></p><p><br /></p><p>In its update report for the sector, Kenanga placed its top picks on MB Resources Bhd and Bermaz Auto Bhd, both of which offer dividend yields above 7%.</p><p><br /></p><p>In addition, Kenanga also maintains the total industry volume (TIV) for 2023 of 720,000 units which will equal the record level achieved in 2022.</p><p><br /></p><p>Among the factors supporting this expectation is strong consumer confidence supported by a stable economy and a healthy job market.</p><p><br /></p><p>In addition, it is also driven by the affordability of motor vehicles supported by stable new car prices and attractive new models.</p>