High Car Ownership: Malaysia has relatively younger population who are more enthusiastic about cars. Malaysia’s car market is very small with high ownership of cars in Malaysia. Malaysians prefer to own a personal vehicle rather than using public transport. Most of people start owning a car at an early age in Malaysia.
Infrastructure Development Programmes: Government has introduced various programmes for developing roads and other infrastructure. It has set a substantial budget for transport development works to help boost the country’s economy. The Finance Ministry has announced US$829.6 million will be used for infrastructure projects.
Boosting second hand vehicle sales: With this extended warranty programme, used car dealers are protected from the risk associated with sourcing, such as trading cars with pre-existing issues, in-scope components condition, or reported beyond economical repair. Strict Puspakom (Malaysian computerized vehicle Inspection Company) inspection is followed.
Limited Research & Development: Presently, while local manufacturers and assemblers of motor vehicles undertake R&D activities, their total expenditures on R&D are still small, compared with other global automotive producers. Manufacturers of parts and components based in the country, which have the capacity and capability to design, develop and export their products, are Tier-1 suppliers, which are mostly foreign-owned. Local suppliers, which are mostly in Tiers2 and 3, lack the capacity and capability in R&D, and are dependent on the design technology from the automotive manufacturers. To remain competitive, global producers are increasingly outsourcing their non-critical R&D activities. A similar arrangement will need to be undertaken by domestic manufacturers.
Analysts at Ken Research in their latest publication- “Malaysia Automotive Finance Market Outlook to 2026-Driven by exorbitant car prices, growing digital penetration, preference for owning passenger cars amidst systematically regulated car ownership policies by the Government” by Ken Research provides a comprehensive analysis of the potential of Automotive Finance Industry in Malaysia. The rising demand for new and used cars among the population, along with the easy availability of finance and low interest rates and Government Initiatives, the automotive finance market has shown a significant growth during the current period.
Key Segments Covered: -
Malaysia Automotive Finance Market:
By Distribution Channels:
OEMs
Banks
NBFCs
Commercial Banks
Investment Bank
Islamic Banks
By type of Vehicles:
Passenger
Commercial
By tenure of Loan:
0-5
6-7
8-9
By condition of Vehicle:
New
Old
By Region:
Central
Southern
Eastern
Northern
Other
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Key Target Audience
Auto Finance Providers
Insurance companies
Car Manufacturers
Financial service provider
NBFCs
Fin-tech companies
Global automotive finance companies
Government Bodies & Regulating Authorities
Time Period Captured in the Report:
Historical Year: 2016-2021
Base Year: 2021
Forecast Period: 2022F– 2026F
Companies Covered:
Auto Finance Providers
Maybank
Public Bank
CIMB
Hong Leong
Ambank
RHB Bank
Affin Bank
Bank Simpanan Nasional
Key Topics Covered in the Report
Malaysia Automotive Finance Market Overview
Ecosystem of Malaysia Automotive Finance Market
Business Cycle and Genesis of Malaysia Automotive Finance Market
Export and Import Overview of Malaysia Automotive market
Industry Analysis of Malaysia Automotive Finance Market
SWOT Analysis of Malaysia Automotive Finance Market
Malaysia Auto-finance market Value Chain
Non-Performing Assets in Auto-finance Segment
Major types of Auto loans in Malaysia
Key Growth Drivers in Auto Finance Market in Malaysia
Major Challenges and Bottlenecks in Malaysia Automotive Finance Market
Regulatory Framework in Malaysia Automotive Finance Market
Competitive Landscape in in Malaysia Automotive Finance Market
Market Share of Major Auto Finance Providers in Malaysia Automotive Finance Market
Detailed Analysis on Malaysia Automotive Finance Market (Market Size and Segmentation, 2016-2022; Future Market Size and Segmentation, 2023-2027F)
Market Opportunity and Analyst Recommendations
For more insights on the market intelligence, refer to the link below: -
Malaysia Automotive Finance Market Outlook to 2026
Related Reports by Ken Research: -
