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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

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  • 81 Pages
  • November 2022
  • Region: Malaysia
  • Ken Research Private Limited
  • ID: 5819873
The report “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” provides a comprehensive analysis of the potential of Automotive Finance Industry in Malaysia. The report also covers overview and genesis of the industry, market size in terms of revenue generated; market segmentation - By Distribution Channels, By type of Vehicles, By tenure of Loan, By condition of Vehicle, By Region; growth enablers and drivers, challenges and bottlenecks, trends driving adoption of technological innovation; regulatory framework; end user analysis, industry analysis, competitive landscape including competition scenario, market shares of major players on the basis of Interest on New Passenger Vehicles, Margin of finance, Max. tenure of loan, Products Offered. The report concludes with future market projections of each product segmentation and analyst recommendations.

Detailed Analysis on the Malaysia Automotive Finance Market:

Number of passenger car ownership in Malaysia exceeded the population in Malaysia. Poor public transport infrastructure is one of the reasons. The used car industry is also enjoying a boom in business, and is reportedly on-track to register double-digit growth in sales. Import of vehicles still exceeds the exports resulting huge trade deficit. Government has taken various initiatives to support domestic manufacturing of vehicles by setting up companies like Proton and Perodua. Government also gives various incentives on purchasing of National Car. The market is at maturity stage with stable population, high ownership of car and small domestic commercial vehicle market, the opportunity of growth in Malaysia is quite limited.

Malaysia Automotive Finance Market Segmentations:

By Distribution Channels:

Banks have the largest market share in Auto-financing industry of Malaysia. Banks offer very lucrative offers for the consumers which can’t be provided by other financing institutions.

By type of Vehicles:

In Malaysia, Commercial Vehicle market is very small. Also, there is very poor public transportation and other infrastructure like end-to-end connectivity.

By tenure of Loan:

According to Hire-purchase Act of Malaysia, the maximum tenure of Automotive loan should not exceed 9 years. Therefore, mostly people take loans for 9 years in Malaysia.

By condition of Vehicle:

In Malaysia, market for used Vehicles is quite large as compared to other countries but there is disparity between the market of new and used vehicles.

By Region:

Major portion of the credit is disbursed in Central region of Malaysia, which is very well developed and is hub of all the activities in Malaysia

Malaysia Automotive Finance Market Future Outlook and Projections:

The Malaysia Automotive Finance Market is expected to grow at a double digit CAGR over the period 2022-2027F owing to rising demand for cars, easy loans availability, and government initiatives.

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 years
  • 6-7 years
  • 8-9 years

By condition of Vehicle:

  • New
  • Old

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:

  • 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

Table of Contents

1. Executive Summary
1.1. Overview of the Auto-finance industry in Malaysia
2. Country Overview: Malaysia
2.1. Malaysia at Glance
2.2. Economy of Malaysia
2.3. Infrastructure development of Malaysia
3. Market Overview
3.1. Malaysia Automotive Market Overview
3.2. Car Prices In Malaysia
3.3. Export and Import Overview of Malaysia Automotive market
3.4. Malaysia Auto-finance ecosystem
3.5. Evolution of Auto-finance Industry in Malaysia
3.6. Malaysia Auto-finance market Value Chain
3.7. Major types of Auto loans in Malaysia
3.8. Types of Interest Rates in Malaysia
4. Industry Analysis
4.1. Trends and Developments in Malaysia Auto-finance Industry
4.2. Non-Performing Assets in Auto-finance Segment
4.3. SWOT Analysis of Malaysia Auto-finance Industry
4.4. Porter’s five forces Analysis of Malaysia Auto-finance Industry
4.5. Growth Drivers of Malaysia Auto-finance Industry
4.6. Issues and Challenges in Auto-finance Industry
4.7. Government Policies in Malaysia Auto-finance Market
4.8. Decision making Parameters for selecting loan vendor
4.9. Impact of COVID-19
4.10. Auto-E-commerce Platforms
4.11. Impact of Auto E-commerce Platforms on Financial Institutions
4.12. Case Study: Carsome
5. Market Size
5.1. Market size of Malaysia Auto-finance by credit disbursed, 2016 - 2021
5.2. Market size of Malaysia Auto-finance by loan outstanding, 2021 - 22
6. Market Segmentation
6.1. Overview of the segmentation of Malaysia Auto-finance market, 2021
6.2. Segmentation on the basis of tenure of loan, 2021
6.3. Segmentation on the basis of Channel of Distribution, 2021
6.4. Segmentation on the basis of type of vehicle, 2021
6.5. Segmentation on the basis of condition of vehicle, 2021
6.6. Segmentation on the basis of region, 2021
7. Competitive Landscape
7.1. Comparative Analysis of major Players in Malaysia Auto-finance Industry
7.2. Market share of Major Auto-finance players
7.3. Company Profile of Top 3 Players in Market
8. Future Outlook and Projections, 2021-2026E
8.1 Future Market size of Auto-finance Market
8.2 Future Market Segmentation by Region, 2026E
8.3 Future Segmentation by Distribution Channel, 2026F
8.4 Future Segmentation by type of vehicle, 2026F
8.5 Future Market Segmentation by tenure of loan, 2026E
8.6 Future Market Segmentation by condition of Vehicle, 2026F
9 Analyst Recommendations
9.1 Analyst Recommendations for Auto Finance Players
9.2. Analyst Recommendations for Car Buyers in Malaysia
10 Industry Speaks
11. Definitions and Research Methodology
12 Disclaimer and Contact the Publisher

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Maybank
  • Public Bank
  • CIMB
  • Hong Leong
  • Ambank
  • RHB Bank
  • Affin Bank
  • Bank Simpanan Nasional