Malaysia Automotive Finance Industry is expected to grow at a CAGR of ~3{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} between 2022-2026 owning to increasing passenger car sales, upcoming brand-new car models and strict government regulations: Ken Research

GURUGRAM, India, Dec. 14, 2022 /PRNewswire/ — Malaysia Automotive Finance Market is in the growing stage, being driven by increasing passenger car ownership, emergence of new players, innovation and government initiatives. There are several players in the Malaysia auto finance market some of which are Al Rajhi Bank, Maybank, Affin Bank, CIMB Bank and AmBank group.



  • Government is planning to establish a centralized database for the transport and logistics sectors which would help in greening the Automobile sector that will eventually lead to growth in EV sector.

  • High digitization and usage of new advance technology like AI and ML will improve customer convenience by automating the process, which will led to growth in Malaysia auto finance industry.

  • Malaysian Government is expected to introduce scrapping policy in near future due to which the tenure of loan is expected to fall. People will have to discard their vehicles early and this will also affect the number of loans granted for used car segment.

Upcoming Brand-New Car Models Introduction of state-of-the-art models such with latest designs and features as well as electric vehicles at affordable and competitive prices may assist to sustain buying interest of the customers, leading more auto-loans in future. Furthermore, continuous efforts to fulfill backlogged orders and promotional campaigns by car companies are also in progress.

Promotion of National Auto-manufacturing: Government has been taking various initiatives to promote domestic vehicle manufacturing industry. It provides various benefits to national car buyers. Companies like Proton and Perodua are being set up to manufacture cars domestically.

Boosting second hand vehicle sales: Government has taken several step like Strict Puspakom inspection to ensure that the 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 in order to increase the sale of the used car in Malaysia.

Government Regulations promoting automotive industry: The National Automotive Vision is to make Malaysia a hub for exports of vehicles, exports of components and spare parts, automotive research and development (R&D), development of automotive and mobility related technologies, vehicle and component testing. The Hire-Purchase Act,1967 is a Malaysian law which enacted to regulate the form and contents of hire-purchase agreements, the rights and duties of parties to such agreements and to make provisions for other matters connected therewith and incidental thereto.

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 along with some government initiatives will promote this industry over the forecast period. The Malaysia Automotive Finance Market is expected to grow at a CAGR of 2.98{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} over the forecasted period 2022F-2026F.

Key Segments Covered:-

Malaysia Automotive Finance Market

By Distribution Channels

  • OEMs

  • Banks

  • NBFCs

  • Commercial Banks

  • Investment Bank

  • Islamic Banks

By type of Vehicles

By tenure of Loan

  • 0-5 years

  • 6-7 years

  • 8-9 years

By condition of Vehicle

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By Region

  • Central

  • Southern

  • Eastern

  • Northern

  • Other

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:-

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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

Related Reports By Ken Research:- 

UAE Auto Finance Market Outlook to 2026F – Driven by growing digital penetration, evolving vehicle ownership characteristics and rebates by the Government amidst systematically regulated vehicle ownership and financing policies by the regulatory authorities

According to Ken Research estimates, that UAE Auto Finance Market has decreased from 2016 to 2021 at a CAGR of -6.3{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} owing to government regulations, lifestyle changes and the COVID-19 lockdown but in the upcoming period, the growth is expected to normalize owing to the emergence of new and improved technologies. UAE Auto Finance Market is estimated to grow at a positive CAGR of ~17{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} in between 2022E and 2026F.

KSA Auto Finance Market Outlook to 2026F– Driven by Women Entering the Market, Growing Private Entities and Initiatives by the Government

KSA Auto Finance Market is in growing stage, being driven by banks and NBFCs and introduction of Fin-Tech companies and online personal loan aggregator platforms. The credit disbursed market fell and experienced a downfall due to factors like Covid outbreak and semiconductor chip shortage. Automotive sales were also affected by higher shipping costs in 2021 as prices of shipping containers container freight rates have risen steeply. Higher prices were shifted to the consumers leading to increase in credit disbursed. However, the market is recovering and registering a positive growth since 2021. Entry of women drivers in the market has led to an increase in the total cars sold and hence the credit disbursed in automotive sector.

Singapore Auto Finance Market Outlook to 2025 (Edition II) – Driven by exorbitant Car Prices, Growing Digital Penetration and evolving Vehicle Ownership Characteristics amidst Systemically Regulated Car Ownership Policies by the Government

The Singapore Auto Finance Market was observed to be in maturity stage during the period of 2015-2020 despite growing digital advancements to ease loan application process, emerging green car loans and introduction of finance aggregators. This is due to the strict regulations of government in terms of maintaining the on-road vehicles. The Singapore Auto Finance Industry had shrunk at a CAGR of ~0.1{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} on the basis of Auto credit disbursed and slightly grown at ~1.5{1668a97e7bfe6d80c144078b89af180f360665b4ea188e6054b2f93f7302966b} basis Auto Loan Outstanding in 2015-20. The CAGR was comparatively low owing to less number of cars financed in 2020 due to COVID – 19.

Vietnam Auto Finance Market Outlook to 2026F– Driven by Digital Penetration and Dominance of Banks along with a Shift in Consumer Preference form 2W to 4W

Vietnam’s Cold Chain market was evaluated to grow at a double-digit CAGR during 2016-2021. The market is currently in the growth stage owing to lower interest rates along with increasing government initiatives and investments in the sector. The Pandemic has resulted in the slow growth of Auto Finance where Vietnamese preferred to own a private vehicle to avoid public transportation. The growing penetration of the internet and smartphones and the rising purchasing power of the middle class resulted in changing preferences of consumers which are some of the key factors fueling the Auto Finance Market in Vietnam.

Philippines Auto Finance Market Outlook to 2026- Driven by change in consumer spending, ease in provision of loans, improving technology and government support

Philippines is 2nd fastest growing vehicle market in ASEAN with Commercial vehicles with higher market share and the market has observed the maximum growth in the automotive industry in ASEAN Countries, with automotive loan outstanding growth in the last five years mainly due to population increase and economic growth. The Auto Finance Market is in the Growing Phase with Banking Institutions and NBFCs leading the Market and Online Aggregators Platforms entering the Market with the Introduction of Online Personal Loan aggregator Platforms in the market to provide ease in vendor selection process like BSP pay, Pesopay are among the top aggregator, Better Technological Infrastructure in the form of growing Auto Finance platforms and rising usage of AI and ML for better Auto lending experience will lead the future growth of the industry. Innovative Business Models such as Subscription Lending & shared ownership may grow in future to increase car financing. The market is still expected to a good growth in Auto Finance Market of Philippines.

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