Proton Records Bright Start for 2021, Aims for a Record Setting Year

PROTON has achieved a bright start for the year, with the highest cumulative sales in the first quarter of the year since March 2012.

This has resulted in a knock-on effect and for Proton Commerce Sdn. Bhd. which could lead to a record number of loan disbursements.

The brand’s finance arm has seen its loan volume increase in line with the sales of Proton vehicles. 5,410 loans were disbursed in 2018, which nearly doubled to 10,668 the following year. Despite disruptions by COVID-19 as well as loan moratoriums, Proton Commerce has disbursed an astounding 14,189 loans. 

This year, the company is aiming for a record peak of 20,000 disbursements, which will be a new high for the company.

Proton Commerce chief executive officer, Mooi Fi Phang said,“Although there was a downturn in many economic sectors caused by the Covid-19 pandemic, consumer sentiment for car purchases remains positive. PROTON’s gains in product quality, its additions to the dealer network and the launch of new models have grown interest in its cars and we are seeing the results in the number of loan applications received.

“Our loan disbursement volume for Q1 this year has increased by 42.3 percent and we are confident of our volume growing even more in Q2. However, the hire-purchase market could face a tough second half of the year as the PENJANA sales tax incentive is scheduled to expire at the end of June so the industry could see a period of correction as market demand finds its natural level,” continued the CEO.

Mooi also stated that Proton Commerce is seeing a change in demographics of its customers as the age of buyers is trending downwards. This is in-line with the company’s revamp, which is seen as a more trendy choice. In addition, approximately 80 percent of its customers opt for 9-year hire-purchase financing plans which affected loan rates up to three times lower than the industry average. 

“2020 was a tough year for the industry as financial institutions had to make modification loss provisions for the 6-month moratorium programme announced by the central bank. Thankfully for Proton Commerce, the financial stability of our customer base meant a very low number of our borrowers opted for subsequent moratorium and with the removal of the provisions this year, we expect to contribute a healthy profit to our shareholders,” added Mooi.