Proton Commerce Sdn Bhd (PCSB) will be expecting growth for Hire Purchase (HP) in the automotive market at the 4th quarter of 2020. PCSB is a joint venture between Proton Edar Sdn Bhd and CIMB Bank Berhad, which was incorporated in 2003 and offers loan packages at a competitive rate for Proton car buyers with fast application and approval processes.
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.
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.