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

    Richa Sharma

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    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



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    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

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    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

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