In line with the growth in PROTON vehicle sales to 141,432 units in 2022, its financing arm, Proton Commerce Sdn Bhd, also experienced growth in loan disbursements. Capitalising on the growth in Proton sales, Proton Commerce managed to achieve a record-breaking volume of loans.
For the 2022 financial year, Proton Commerce issued 22,467 loans to buyers of Proton vehicles, which is a 54% growth compared to 2021. In 8 of the 12 months, it approved and disbursed over 2,000 loans monthly; the 2,872 disbursed in September was its highest. Its loan approval rate in May and June were its highest, at 59%. Incidentally, Proton Commerce is the leading financier for the Proton Saga, the best-selling Proton model.
From Q4 2021, Proton Commerce has been the market leader for the Saga for 5 consecutive quarters. This was punctuated by financing 32% of Proton Saga units sold last November, another new highwater mark.
“PROTON faced a tough start to 2022 and this had a knock-on effect for Proton Commerce. However, we mounted a recovery and made up for lost ground to emerge with a new disbursement record. For 2023, we aim to grow our volume and approval rates even more by leveraging on the continued popularity of the current Proton model range as well as the introduction of new and updated models. Hopefully, this will propel us forwards to become the number one Proton financier,” said Mooi Fi Phang, Chief Executive Officer of Proton Commerce.
Incorporated in October 2003, Proton Commerce is a joint venture between Proton Edar and CIMB to provide a financing alternative for Proton buyers. The company’s performance has mirrored PROTON’s growth in sales trajectory, posting the best results in its history last year.
To increase convenience for Proton buyers, Proton Commerce had recently announced that the validity period of its Letters Of Undertaking (LOU) will be extended from 90 to 180 days, as some buyers face a longer waiting time for certain variants.
“Aside from extending the validity of our LOUs, Proton Commerce will also honour the interest rate offered at the time of approval and as we offer fixed rate financing, our customers do not need to worry about increasing monthly payments. This will make it easier for Proton buyers waiting for their cars and help control their personal budgets,” added Mooi.