Wednesday, February 1, 2023

Email id:, Contact Us : +91-9871552944

Home Banking Financial Services and Insurance Malaysia Automotive Finance Industry is expected to grow at a CAGR of...

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

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% over the forecasted period 2022F-2026F.

Malaysia Automotive Finance Market

Key Segments Covered:-

Malaysia Automotive Finance Market

By Distribution Channels




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



To learn more about this report Download a Free Sample Report

By Region






Key Target Audience:-

Auto Finance Providers

Insurance companies

Car Manufacturers

financial service provider


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

Visit this Link Request for custom report

Companies Covered:-

Auto Finance Providers


Public Bank


Hong Leong


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

KSA Auto Finance Market Outlook to 2026F

Vietnam Auto Finance Market Outlook to 2026F


Rising demand of automotives, Positive Outlook for E-Vehicles, and Potential for Fintech Growth will drive Philippines Auto Finance Market: Ken Research

Buy Now Growing Digital Advancements: The Industry is increasingly moving towards newer technology such as Artificial Intelligence and Machine Learning to improve its efficiency. The...

Malaysia Online Insurance Industry is expected to grow by Increase in Internet Penetration, Government support Along with Low Cost of Infrastructure: Ken Research

Buy Now Malaysians are embracing digital channels for their insurance needs. The market is currently in growth stage, with increasing adoption driven by a wide...

Around 80% of the BNPL Market revenue in UAE was generated by Online mode of payment fueled by the Covid-19 pandemic: Ken Research

Buy Now 1.  The Covid-19 pandemic is a driving force in exhilarating and paving the way for newer companies to enter the BNPL space in...

Most Popular

Global Seed Treatment Market Outlook, and Revenue Forecast: Ken Research

Buy Now What Is the Size of Global Seed Treatment Industry? Global Seed Treatment market is growing at a CAGR of ~% in 2017-2022 and is...

Global Hand Dryers market expected to record a CAGR of ~8% during the forecast period (2017-2028): Ken Research

Buy Now What Is The Size Of Global Hand Dryers Industry? Global Hand Dryers market is growing at a CAGR of ~% in 2017-2022 and is...

Global Wax Market is expected to reach a market size of US$ 14 billion by 2028 growing with a CAGR of 5%: Ken Research

Buy Now What Is the Size of Global Wax Industry? Global Wax market is growing at a CAGR of ~% in 2017-2022 and is expected to...

Global Silicone Sealants market revenue to reach US$ 7 Bn by 2028: Ken Research

Buy Now Global Silicone Sealants Market By Geography The Global Silicone Sealants market is segmented by geography into North America, Europe, Asia- pacific and LAMEA. Asia Pacific...