Since the Zhejiang Geely Holding Group (Geely) acquired a 49.9% share in Proton in 2017, the Malaysian carmaker has been steadily regaining its strength in the domestic market. With new models like the X70 and X50, sales have kept rising although the COVID-19 pandemic slowed the trend last year.
Once the dominant brand in the market, Proton has been at No.2 for over 15 years and has been determined to regain its top position. With a strong sales month and more vehicles being available for delivery in September, the volume of 14,872 units (domestic + export) took the cumulative total volume for three quarters of 2022 to 102,353 units.
The last time Proton reported over 100,000 units for the 9-month period was eleven years ago. This is the fourth consecutive year that the carmaker has crossed the 100,000 mark and this year, it has done so two months earlier than in 2021. The 2022 volume is a 40.2% increase over the same period in 2021.
By Proton’s estimation of a Total Industry Volume of 62,500 units, it will have a market share of 23.8% for the month of September, and it is the first time that the market share for the 9-month period has exceeded 20%.
“Proton’s Q3 performance was our best quarter of the year, coming in with a total volume of 42,229 units for the previous three months. This was made possible by a combination of stability in our production numbers as well as the continued strong appeal of our models, especially for the 2022 Proton Saga and the Proton X50. Therefore, despite the poor start to the year, we are confident of achieving a fourth consecutive year of double-digit sales growth,” said Roslan Abdullah, Deputy CEO of Proton Holdings.
Saga and X50 numbers continue to climb
After starting the year with parts availability issues due to the lingering effects of the December floods, COVID-19, and the global microchip shortage, Proton’s production volumes have stabilized allowing the company to deliver more units to waiting customers.
This is most apparent with the X50, the best-selling SUV in Malaysia, which has historically struggled to meet strong demand since its launch in October 2020. With 4,517 units delivered in September, more than 4,000 units have been delivered for 4 consecutive months leading to a cumulative total of 29,591 units in 2022. This is a significant 78.2% jump over the first 9 months of 2021.
The Saga is also posting impressive numbers. Severely affected by the floods last year that caused deliveries to dwindle to just 76 units in January, the evergreen model set a new high for 2022 with 6,442 units, a number not seen since October 2013. This year, Proton has delivered a total of 40,603 units as at the end of September, almost 50% higher than its 2021 number.
There were also increased deliveries of other models compared to the same month in 2021. For instance, the X70 volume rose by 32.1% to 1,730 units, while the cumulative volume for the Exora rose by 15.6% to 3,108 units for the period from January to September.
Preparing for future growth
“Aside from concentrating on sales growth, the last quarter also saw us laying the groundwork for our future growth. The General Distributorship Agreement with smart sets us up to sell EVs from the brand starting in 2023, while the formation of PRO-NET crystalizes Proton’s commitment to developing and offering new energy vehicles in the future,” said Encik Roslan Abdullah.
Commenting on the proposal recently announced for Budget 2023 to extend the period for duty-free import of electric vehicles (EVs), Encik Roslan Abdullah said the move shows that the government is concerned with the recommendations of industry players, including Proton, who want to develop the EV industry.
“The aspiration to develop the EV Industry is encouraging and we greatly appreciate the government’s efforts to provide a platform for carmakers and the local ecosystem to develop related programs. Proton agrees with the importance of advancing development towards electrification and carbon reduction programs and looks forward to being a key player in these aspects,” he said.
More loans being given out
He added that as a direct result of the strong demand for Proton products, financing by Proton’s subsidiary, Proton Commerce, has also been seeing growth. In September, the company disbursed 2,872 loans, breaking its previous high set in March this year. That brings the total number of loans provided in 2022 to 15,504, which has already exceeded the total number of 14,550 loans for the whole of 2021.
“With the OPR increasing by 75 bps this year, customers are actively searching for the best packages available to finance their new car purchases. As the preferred financier for Proton vehicles, Proton Commerce offers a range of innovative deals including the lowest rates for Proton Saga buyers as well as low monthly income requirements. These moves have proven to be effective, so we are expecting more growth in Q4 this year,” he said.
