KUALA LUMPUR (Sept 21): Proton Holdings Bhd on Monday launched its own automotive financing arm in a move that will provide the national carmaker a powerful tool to drive vehicle sales.

In its initial phase, Proton Capital Sdn Bhd will serve individual customers buying new Proton vehicles through 12 participating outlets in the Klang Valley, the company said in a statement. Applicants may also include self-employed individuals and customers with verifiable sources of income.

Proton Capital adds an important capability to Proton’s business model, which “allows us to work more closely with our dealers and respond more effectively to customers’ needs,” said Zhang Qiang, chairman of Proton Capital.

Proton, a unit of DRB-HICOM Bhd (KL:DRBHCOM), is currently the only national car manufacturer with its dedicated financing unit. Perodua, meanwhile, relies on a network of panel banks for auto loans and hire-purchase agreements for its customers.

At launch, Proton Capital is offering conventional hire-purchase financing for new Proton vehicles, including a standard fixed-rate package and a dedicated package for the Proton S70 taxi.

More products will be rolled out progressively, including financing designed for e-hailing customers, Proton said.

A shariah-compliant financing option is targeted for introduction in early November, subject to product availability as well as terms and conditions, the company added.