Proton dealers seek other ways to boost sales after Bank Negara talks

KUALA LUMPUR: Proton Edar Dealers Association Malaysia plans to seek a revision on the vehicle excise and taxes or discuss other ways to make cars cheaper for consumers.

Bernama reported that the association plans to meet the Ministry of International Trade and Industry and the Ministry of Finance as part of efforts to address a drop in car loan approvals and sales which it says came following the implementation of the responsible financing guideline from Bank Negara Malaysia which came into effect Jan 1.

A dialogue was held yesterday between Bank Negara Malaysia (BNM) and senior officials of Proton, Perodua, the Malaysian Automotive Association, Proton Edar Dealers Association Malaysia, DRB-HICOM and Perodua Dealers Association to address the automotive sector's slowdown in sales.

Following the meeting with members of the automotive industry, Bank Negara said in a statement yesterday that access to financing would not be hampered as it would still be available to borrowers who could afford to repay their loans.

“Bank Negara has written to financial institutions to ensure that consumers who have the ability and capacity to repay should continue to have access to such financing,” it said.

The central bank said the meeting was held with representatives from Proton Holdings Bhd, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), DRB-Hicom Bhd, the Malaysian Automotive Association, Proton Edar Dealers Association and Perodua Dealers Association.

“The meeting discussed various implementation issues which will be resolved with financial institutions, including documentation requirements for purposes of income verification. This will contribute towards more efficient procedures and processes for vehicle financing,” it said.

Bank Negara said in the past five years, the proportion of vehicle financing over total loans to household sector had averaged about 20%, the second highest after financing for residential properties.

“While there have been some reduction in the total number of vehicle financing applications received between December 2011 and January 2012, due in part to the shorter working month, the approval rate for vehicle financing has remained stable at about 54% for the month of January 2012,” it noted.

-Proton