A Closer Look at the Dynamics of EV competition
Key Takeaways:
▪️ Toyota has put into plan the unveiling of their 10 EV models which they have targeted to reach 1.5mn in sales annually by FY26F.
▪️ Moreover, The government plans to extend the EV incentive program, especially pertaining to the 2W segment.
▪️ Lately, China has banned the exports of gallium and germanium, potentially impacting the industries that require semiconductors as part of their production line.
▪️ We remain Overweight on the automotive sector given: a) potential to achieve the target of 1mn units of car sales and 6.2-6.5mn units of motorcycle sales in FY24F, b) EV sales incentives, c) increased use of domestic components, and d) huge investment in EV development in Indonesia.
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