Proton Commerce getting ready for HP volume jump when Proton X50 launches
Jerrica · Sep 30, 2020 05:29 PM
Proton Commerce Sdn Bhd (PCSB), Proton’s in-house automotive financier, has stated that they are expecting a jump in the Hire Purchase (HP) market for cars during the final quarter of 2020. The financier made the prediction thanks to 2 factors, the soon to launch Proton X50 and the Penjana stimulus package.
According to PCSB, the HP industry has been experiencing growth of 1.0 percent to 2.0 percent between FY2017 to FY2019. The growth is broadly in-line with Total Industry Volume (TIV) of the Malaysia automotive market.
But the growth hit a stumbling block for the first half of this year due to the Movement Control Order (MCO). The TIV volume dropped by approximately 1.0 percent.
Despite these external factors, PCSB’s loan assets maintained a Compound Annual Growth Rate (CAGR) of 21 percent 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 percent of overall Proton sales for the month.
PCSB attributed the achievement to the competitive rates offered and the growth of Proton car sales after the country entered the Recovery MCO. Proton has even reported that as of August 2020, they have sold more cars year-to-date then in 2019.
Other than that, PCSB is also attributing the rebound in sales to the Penjana stimulus package offered by the government that imposes a Sales Tax exemption package until 31 December 2020.
Thanks to the Penjana stimulus package along with the upcoming launch of the Proton X50, PCSB is anticipating more growth in the final quarter.
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 percent for the Proton X70, which is on par or lower than competing HP providers.
Meanwhile, have you been following the latest updates on the Proton X50?
There isn’t a time in memory that doesn’t involve staring at cars. After discovering the excitement of watching Schumacher vs Hakkinen, Formula 1 became a major part of life. The love for cars and F1 ultimately led to a job with CAR Magazine. The untimely death of the magazine meant a hiatus from cars at lifestyle women’s magazine Marie Claire before another opportunity came knocking again.