CIMB expects tax-free period to boost its share in auto financing segment

The situation would likely be similar prior to GST implementation in April 2015, says group CEO

By AFIQ AZIZ / Pic By AFIF ABD HALIM

Cimb Group Holdings Bhd group CEO Tengku Datuk Seri Zafrul Aziz expects the three-month tax holiday and new product launch will push up the company’s market share in its auto financing segment.

“As there will be the zero-rated Goods and Services Tax (GST) and Sales and Services Tax, everybody is expecting that people will start to spend more money. Consumer spending will go up,” Tengku Zafrul told The Malaysian Reserve on the sidelines of the launch of the 1-Minute Auto Financing InstaApproval yesterday.

As of January, the group’s market share in the auto financing segment stood at 9%.

“As the government announcement is still new, we have not set any specific target, but we believe it would be stronger,” he added.

He said the situation would likely be similar prior to GST implementation in April 2015 where consumer expenditure has suddenly higher.

“They knew that GST will be implemented in April 1, 2015. As such, they decided to spend more prior to that,” Tengku Zafrul said.

On the government’s cancellation of various mega projects such as the Kuala Lumpur-Singapore high-speed rail and Mass Rapid Transit Line 3 (MRT3), Tengku Zafrul said it will not impact the group’s performance. CIMB Bank Bhd, alongside CIMB Islamic Bank Bhd launched the 1-Minute Auto Financing as part of the bank InstaApproval platform.

The digital platform will be leveraging on big data analytics that approves automotive financing within a one minute period upon full submission of information and documents.

CIMB Bank group consumer banking CEO Samir Gupta said via the application, consumers can enjoy faster financing approval within a minute.

“The paperless system will take about 12 minutes of gathering data from our customer and upon submission, the customer will need to wait about one minute to get the result,” he told reporters during the launch.

“The approval will come complete with the issuance of a letter of undertaking and instant notification via SMS and email to the customer and car dealer,” he said.

The platform will be available at selected partner showrooms, partner roadshows and selected used car dealers.

Seven partners are participating in this pilot project including Perusahaan Otomobil Nasional Sdn Bhd, Honda Malaysia Sdn Bhd, Ingress Auto Malaysia Sdn Bhd, Edaran Tan Chong Motor Sdn Bhd and Perodua Sales Sdn Bhd.