Subang Jaya, 29 September 2020 –PROTON’s in-house automotive financier, Proton Commerce Sdn Bhd (PCSB) is expecting the Hire Purchase (HP) market for cars to continue to grow during the final quarter of 2020. A joint venture between Proton Edar Sdn Bhd and CIMB Bank Berhad, the company was incorporated in 2003 and offers loan packages at competitive rates for Proton car buyers with fast application and approval processes.


PENJANA stimulus package and demand for Proton X50 to drive growth in HP product sales

Over the last three financial years (FY2017 – FY2019) the HP industry has experienced growth of 1.0% to 2.0%, broadly in-line with Total Industry Volume (TIV) of the Malaysia automotive market. For the first half of 2020, the industry saw a year-on-year contraction of approximately 1.0% as the COVID-19 pandemic slowed global economies and caused a drop in TIV volume.


Despite these external factors, PCSB’s loan assets maintained a Compound Annual Growth Rate (CAGR) of 21% from FY2018 to the current period, In fact, in July 2020 PCSB registered a historical high in terms of disbursement value and number of contracts, accounting for approximately 15% of overall Proton sales for the month.


The achievement can be attributed not only to the competitive rates offered by PCSB but also the growth in Proton car sales, which rebounded after the Movement Control Order (MCO) period and as at the end of August, have surpassed the year-to-date volume set in 2019.


PCSB is expecting the number of HP sales for the industry to rebound in the second half of 2020 thanks to the PENJANA stimulus package offered by the government that seeks to grow automotive sales via a sales tax exemption package until 31 December 2020. We are also expecting a boost due to the huge interest in the upcoming Proton X50, which will have an impact for both the last quarter of the year and probably into 2021,” said Mooi Fi Phang, Chief Executive Officer, Proton Commerce Sdn Bhd.


Other growth factors for the final quarter include the recent reduction in the Overnight Policy Rate (OPR) by Bank Negara that allows PCSB to offer more competitive prices to their customers. PCSB currently offers an interest rate from as low as 2.19% for the Proton X70, which is on par or lower than competing HP providers.


As a finance provider for Proton vehicles, PCSB is committed to offering competitive financing rates for Proton customers. As Proton continues on its upward trajectory, PCSB will continue to play a major role in ensuring more Malaysians are able to own a vehicle from Malaysia’s national automotive brand,” added Mooi Fi Phang.



Mooi Fi Phang Chief Executive Officer of PCSB



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