Tesla's presence in Malaysia is seen not to disrupt the local automotive industry, according to Kenanga Research.
The research firm maintains an 'overweight' rating on the automotive sector, despite Tesla's electric vehicle (EV) entry being well received in the country.
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.
Therefore, it is seen that it will not affect the demand for local vehicles.
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%.
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.
Among the factors supporting this expectation is strong consumer confidence supported by a stable economy and a healthy job market.
In addition, it is also driven by the affordability of motor vehicles supported by stable new car prices and attractive new models.
