Automotive - Automotive loan grew slower in Jan24

Automotive - Automotive loan grew slower in Jan24 The automotive industry is currently facing various challenges, one of which is related to sales of four-wheeled vehicles, which in recent years have tended to stagnate. This also has an impact on banking motor vehicle credit (KKB), which is still sluggish. Meanwhile, based on data from Bank Indonesia (BI), motor vehicle credit in January 2024 grew softer by 12.6% yoy to IDR134.1 tn compared to the period of December 2023 which grew by 13.2% to IDR133.3 tn. Comment : The slower growth is acceptable as 4W sales in Jan24 reported a sharp drop. We think this should be temporary as in the beginning of every year, sales mostly were lower. We expect total 4W sales to continue recorded more than 1 mn unit. On more optimistic scenario 4W sales volume could noted much higher growth figure yoy supported by expectation on lower loan yield. Maintain overweight for automotive sector.