KUALA LUMPUR, Sept 29 — Proton Holdings Bhd’s (Proton) financing arm, Proton Commerce Sdn Bhd (PCSB), expects the hire purchase (HP) market for cars to continue to grow during the final quarter (Q4) of 2020, bolstered by the government’s tax incentives and its upcoming new model — the X50.

PCSB said the National Economic Recovery Plan (PENJANA) and demand for the X50, its new compact sport utility vehicle, are expected to drive growth in HP product sales.

"This (expected growth) is thanks to the government’s PENJANA stimulus package that seeks to grow automotive sales via a sales tax exemption package until Dec 31.

"We are also expecting a boost due to the huge interest in the upcoming Proton X50, which will have an impact on both the last quarter of the year and probably (into) 2021,” said PCSB chief executive officer Mooi Fi Phang in a statement.

He said other growth factors for Q4 include the recent reduction in Bank Negara Malaysia’s overnight policy rate that allows PCSB to offer more competitive prices to their customers.

He added that PCSB currently offers an interest rate from as low as 2.19 per cent for the Proton X70, which is on par with or lower than competing HP providers. — Bernama