Proton has achieved another milestone by surpassing the 100,000-unit mark in sales for the fifth consecutive year. This milestone was reached in August, a month earlier than in the previous year. With 13,955 units delivered in the same month, the year-to-date (YTD) sales for 2023 now stand at 104,602 units, which is a significant increase of 19.6% or 17,121 units compared to the first eight months of the previous year.
In August, the total industry volume (TIV) is estimated to be at 74,200 units, giving Proton a market share projection of 18.8% for the month and a YTD market share figure of 20.8%. The company’s volume growth outpaces the TIV, which is estimated to be at 12.2% for 2023.
Proton continued its impressive sales trend in July with 13,326 (domestic + export) units sold, building on a solid first half of 2023. The amount represents a 16.1% rise over July 2022 and contributes to year-to-date (YTD) sales of 90,647 units, the company’s first breach of the 90,000-unit threshold since 2012 and a 26.6% increase over the prior year. Market share for July is anticipated to be 20.5%, bringing the year-to-date market share to 21%.
The success of Proton is set against a background of rising vehicle sales, with total industry volume (TIV) for July predicted to reach 64,864 units. This raises the monthly total by 29.9% over the corresponding month in 2022 and raises the year total by 12.9%. As a result, Proton’s sales performance through July of this year had been 14% better than the industry average.
Proton achieved a productive first half of 2023 by attaining its highest overall sales figures since 2012. With 14,351 units sold in June (domestic + export), total sales have reached 77,321 units, an increase of 28.6% over the same month last year and more than three times faster than the industry’s overall sales growth.
Total industry volume (TIV) is predicted to be 61,900 units in June, translating to a market share for Proton of 23.2%. Year-to-date market share has climbed once more to 21.3%, an increase of 3.2% over the same period in 2022.
Following a sluggish start to the second quarter in April, national automaker Proton reported a 35% increase in sales in May attributable to what it called a total industry volume (TIV) rebound.
With 62,970 units sold over the first five months of the year, the largest number of any brand in Malaysia’s automotive sales table, and a 38.9% increase over the same period last year, is the sales total. Proton’s market share is predicted to be 21.5% for the month and 20.9% for the year based on estimates that Total Industry Volume (TIV) recovered by 32.2% in May and closed at 61,600 units.
For Karamjit Singh, age is just a number and at 60, he still has ‘The Right Stuff’ to not only compete in rallies but also become a champion. The younger generation may have physical agility and perhaps even more bravery but this uncle has experience in the sport that goes back over 35 years – before some of them were even born!
Driving a Proton Gen2, Karamjit and co-driver Jagdev Singh were today crowned champions of the 2022 VANTAGE Malaysian National Rally Championship (MNRC). ‘The Flying Sikh’ shows that his age is no barrier (nor is the age of his rallycar which is 15 years old) and has been recognized as Asia’s most successful rally driver.
In spite of the challenges of getting parts, especially microprocessors, to complete vehicles, the auto industry in Malaysia actually had a boom year and is expected to have a Total Industry Volume (TIV) of over 700,000 units. Even by November, the TIV had reached 642,306 units, exceeding the sales forecast of 630,000 units made by the Malaysian Automotive Association (MAA).
For Proton, it was also another great year – the fourth, in fact – as the brand saw overall sales of 141,432 units (including exports) in 2022. This was with the addition of another 14,750 units in December, the fourth best monthly performance for the year.
Compared to numbers reported in 2021, Proton’s total sales grew by 23.3% despite a tough start to the year. Production was disrupted at both factories due to a combination of flooding which affected parts vendors in Selangor and an acute shortage of microprocessors, which was a global problem. The situation limited output and deliveries for the first 4 months of the year.
Mattel, the American toy and entertainment company, has over a dozen factories around the world which makes its various products, with the Hot Wheels model cars probably the best known. And of its main factories in China, Indonesia, Malaysia, Mexico and Thailand, the one in Malaysia is the largest Hot Wheels manufacturing plant in the world. Malaysia therefore plays an important role in Mattel’s supply chain for the company’s manufacturing, tooling, and commercial operations.
The plant – Mattel Malaysia Sdn Bhd (MMSB) – located in Perai, Penang, was established in 1981 and is also the world’s only manufacturer of Hot Wheels singles, the top-selling toy globally in 2021.
Currently producing around 9 million diecast car models each week for markets around the world, MMSB is aiming for a 20% increase in production capacity by 2025.
While the newer X70 and X50 SUV models have been selling well and have strong demand, it has been the Saga that has consistently remained the strongest seller for Proton all these years. It contributed to a large share of sales each year that the original model was able to last right up till the beginning of 2008 – almost 23 years after it was launched.
The generations following enjoyed the same success and loyal customer base that kept growing, and so when it comes to any updates, the focus is on providing more but not tampering with the success formula. That’s the case with the updated 2022 Saga launched today and the slight changes in price across the range are matched with additional features and of course, some cosmetic changes.
The 2022 range is offered with 4 variants – Premium S and Premium, and Standard with automatic and manual transmissions. From what we recall, the last price range for the Saga was between RM32,800 to RM39,800 and the new pricelist shows a range of between RM34,400 to RM44,300.
When Proton Design began working on this new model, the COVID-19 pandemic had started and people had to work from home. But fortunately, it was already decided that there would be no major changes required so the ‘new normal’ in working life was not a problem for the design team.
For facelifts, the designers usually make alterations in the usual areas where fixed apertures in the bodywork are – typically the grille, bumpers and lighting units. Unless there is extra budget, new body panels are avoided and this has been the case for the new Saga which also retains the bumpers from before.
The grille has the same ‘Infinite Weave’ design as before – a signature feature of Proton models – and now incorporates the latest brand logo in the middle. Sharp-eyed observers will spot the differentiating element which is in the strip running along the bottom of the grille. Where is used to be just a straight line running the full width, the logo now ‘cuts’ into the strip which also has a ’dip’. It would seem the designers have recalled a little detail that began with the Waja 20 years ago and was present up till the Satria Neo.
Depending on the variant (of which there are four), the strip is silver (or is it white) on the Standard and Premium versions and red on the Premium S.
To add sportiness to the top Premium S version, side skirts are added along with extensions to the front bumper. While skirts do have a vital role in aerodynamics on racing cars, they are largely cosmetic attachments that visually lower the car. At the rear is a slim spoiler which is also found on the other 3 variants.
Facelifts also often see the wheel designs changing as this does not require any engineering changes. For the 2022 model, the 15-inch alloy wheels for the Saga Premium S/Premium have an interesting design with 4 spokes finished in a light colour and the other sections of the wheel left dark. The wheels for the Saga Premium have all the spokes in the same colour for differentiation.
15-inch wheels on Saga Premium S (left) and Saga Premium (right).
The Standard versions also have different wheels or rather, the Standard with automatic transmission has 14-inch rims of a similar design as before and the one with manual transmission is fitted with steel wheels (and covers). Standard versions have 175/65 tyres while the Premium versions get a wider 185/55 size.
The same proven 1.3-litre 16-valve DOHC VVT engine is used for all variants. Its output of 95 ps/120 Nm reaches the front wheels through a 4-speed automatic (not a CVT) or 5-speed manual transmission. No mention is made of tuning changes but to help the driver stretch each litre, there’s ECO Drive Assist to indicate when the driving style is efficient. Of course, the engine runs fine on RON95 so no worries about the rising price of RON97 petrol.
One thing we noticed was the absence of insulating pads on the undersides of the bonnet as well as bootlid. These pads can be found in most cars nowadays, even rivals to the Saga. Exposing bare metal (even if painted) doesn’t help the image of a car as it gives a ‘cheap’ impression but Proton probably needed the cost-saving. While acknowledging the omission, a senior executive on the engineering team said that in as far as noise is concerned, the absence of the insulating pad does not make a lot of difference as a lot of effort had already gone into reducing overall noise levels earlier. However, for those who have bionic ears and insist that an insulating pad makes a difference, Proton does offer the item as an accessory. It’s like the old days when EON used to sell sound-absorbing pads which owners could add on to the bodywork to reduce noise.
Omission of insulating pad exposes the bare metal (even if it’s painted), which gives a ‘cheap’ look.
Like the exterior, the interior also gets changes which do not require major changes in the overall structure of the various sections, eg the dashboard. The Premium S gets some extra attention in detailing with red accents around the air vents. The same red treatment is also seen around the meters, an idea which was originally used on the Anniversary Edition (but with a different colour).
New convenience features include automatic folding mirrors, keyless entry and a pushstart button which means the key fob can stay in the pocket and handbag. However, it would need to be used if you want to open the bootlid from a distance.
The boot space is still 420 litres, quite generous for a small car, and when more space is needed, the rear backrest can be folded down. This lengthens the boot floor into the cabin so you can load a long carpet.
As a general policy, the Geely Group which Proton is a part of has made cabin air quality an important matter, and this is especially important today to control the spread of viruses. During the pandemic’s early months, Geely was quick to develop more effective air filtration systems for its cars and other brands in the group have also followed suit. For the new Saga, the N95 cabin filter is now standard for all variants.
The infotainment system has updated has the new operating software and Bluetooth 4.2 for better wireless connectivity. It also easily connects to compatible Android and iOS smartphones so drivers can use and manage their favourite apps while on the move. Switches located on the steering wheel allow for easy access to change audio settings and answer calls while driving.
For the absent-minded types, there’s now a reminder message which appears on the display when the engine is switched off. It reminds the driver to check that they have all their belongings and more importantly, have not left their children behind! It seems odd that a parent can forget their child was travelling with them and leave him or her inside but as we have read in many reports, that does happen and sometimes end in tragedy.
The Saga, being of an earlier generation of cars, doesn’t have the increasingly common suite of integrated driver-assist systems. Nevertheless, it still has many active safety systems that will help the driver avoid an accident. ABS, traction control, stability control, etc are all provided but it’s a pity that the Standard with manual transmission does not have electronic stability control/traction control. Again, this is probably a cost-saving matter but where safety is concerned, Proton should be working towards providing every customer with the best safety equipment possible.
Perhaps the Saga, being a legacy model, is constrained by having been developed along different cost structures and there’s not much that can be done to change that. Moving forward with Geely now providing its expertise and experience in more cost-effective engineering and manufacturing, the next generation of the Saga should be able to have more features, even as an entry-level model.
Up till 2001, Proton had entered many markets around the world, with over 210,000 cars exported to 51 countries. However, after that, the number fell and although recognizing that exports were vital as its protection in the home market diminished and competition increased, Proton did not have a strong export business.
The number of exported vehicles dwindled to only 248 units in 2017 but over the past few years, the Malaysian carmaker has been slowly rebuilding its presence overseas and even having models assembled in some countries. Volumes are seeing a gradual upturn and last year, 3,018 Proton vehicles were exported, more than double the number in 2020. For 2022, the International Sales Department is targeting to grow export sales exponentially to 10,000 units.
As it has a bigger focus on righthand-drive models, it has obviously given more attention to countries where motorists drive on the left side, like us. The latest new market is South Africa, although it is not unfamiliar to Proton as the brand had a presence there up till 2012. It will return with the X50 and X70 this September, followed by the latest Saga.
It will be represented by the CMH (Combined Motor Holdings) Group, an investment holding company which has been active in the motor business since 1987. Proton joins a long list of global brands that CMH represents, some of which are Ford, Chery, Honda, Toyota, Suzuki, Mahindra, Peugeot and Citroen.
SUVs to grow export sales
Proton’s growth will be achieved not only by entering more new markets but also increasing local assembly (CKD) operations overseas. Currently, the carmaker has CKD operations in Pakistan, Kenya and Bangladesh with Sri Lanka set to begin in the second half of 2022. The company currently exports cars to 13 overseas markets, with South Africa becoming the fourteenth one.
As a percentage of Malaysia’s overall vehicle exports, Proton’s numbers are becoming increasingly prominent. From 12.8% of total exports in 2019, the number grew to 30.2% in 2020 and hit 60.9% in 2021. That put the brand at the No.1 position, an achievement in spite of the global pandemic.
Proton SUVs help brand image
Proton’s improved model range has helped in export sales, especially as it has the two SUVs jointly developed with Geely. The SUV segment is the most active globally and the sales success enjoyed in Malaysia by the X50 and X70 has been largely replicated in other markets. This helps to establish the brand, paving the way for more models to be exported.
“Our new model range offers advanced features that are on par with many competitors from other brands. In many of our markets, the Proton X50 and Proton X70 sit near the top of their class in terms of specifications yet are sold at prices equivalent to or less than their direct rivals. This helps to draw in the upper echelon of local car-buyers and helps build brand equity in these markets, making it easier for our other products to then be accepted in the future,” said Steven Xu, Director of International Sales.
“PROTON’s long-term goals require exports to play a major role to grow the company’s overall sales as the annual Total Industry Volume in Malaysia is expected to remain flat. So, we are exploiting the strength of our new products, our brand and even the links Malaysia has with other countries to establish a foothold in many new markets. This is then bolstered by establishing CKD operations where possible, which also helps to grow local economies,” he added.
Although it is estimated that the Total Industry Volume (TIV) of new vehicles sold in Malaysia last year dropped by at least 4.6% to just over 505,000 units of passenger cars and commercial vehicles, Proton’s sales for the year rose by 4.5% over its 2020 volume. With December contributing 14,147 units, the Malaysia carmaker ended the year with a total of 114,708 units delivered (including export sales). It was the highest closing figure since 2014 and is the third consecutive year of volume growth for the company.
The brand’s market share in December is estimated to be 20.6% but for the whole of 2021, it would likely be 22.7% (pending official data from the Malaysian Automotive Association). This would be an increase of 2% over the market share in 2020, putting it is a firm second position in overall sales.
SUVs make big contribution
It’s not surprising that the two SUV models – the X70 launched in December 2018 and the X50 in October 2020 – have made major contributions to Proton’ sales numbers. This mirrors the global trend that has been going on many years now where SUVs are very popular.
With a total of 45,149 SUVs sold in 2021, Proton can claim to be the best-selling SUV brand in Malaysia. That number accounted for nearly 40% of its total sales volume. Individually, the X50 ended the year with 28,774 units, with December being its best month when 4,310 units were delivered nationwide. It was the second consecutive month the model exceeded more than 4,000 units.
Meanwhile, 16,375 units of the bigger X70 were delivered in 2021 with a final month figure of 1,616 units. This put it at the top of the SUV C-segment, and third in terms of overall SUV sales.
Saga still the bestseller
Nevertheless, the bestselling model for Proton was still the evergreen Saga, with 42,627 units sold. The model is also sold overseas and assembled in some countries as well, enabling better supply of cars to those markets.
Other models that performed well in 2021 were the Exora (4,035 units), Persona (16,153 units) and Iriz (6,708 units). Deliveries rose a bit during December as chip supply issue improved slightly.
Growing international sales International sales were also a major highlight for the company. With 3,018 units exported in 2021, the total volume grew by over 100%. This made Proton the number one local automotive brand for export sales last year. With local assembly operations ramping up in overseas markets coupled to a hopeful loosening of trade restrictions, there is optimism the upward trend will continue in coming years.
“2021 was tough for the automotive industry as a whole and this is reflected in the reduction in TIV compared to the previous year. From a global chip shortage to a spike in COVID-19 numbers that led to another lockdown to skyrocketing transport costs, there were many challenges for industry players to overcome. That is why PROTON’S sales growth in a year where the market contracted was significant as it was the result of careful planning and juggling of available resources,” said Roslan Abdullah, CEO of Proton Edar.
“Regarding export sales, we are equally proud about being the brand with the highest export volume in 2021 as it proves we are gaining traction overseas thanks to the joint efforts of our International Sales division and our foreign partners. While increasing shipping costs are a growing concern, our planned activities in 2022 means we expect export sales growth to accelerate in the coming years,” he added.
7 new outlets opened
The Proton network of 3S/4S outlets started 2021 with 140 outlets and despite the challenges faced in terms of financing and construction works, another 7 outlets were in operation by the end of 2021.
“The growth of Proton’s ancillary businesses such as Proton Commerce and the increase in the number of outlets is directly linked to the number of vehicles we sell. As sales have grown so have our facilities to cater to an increased number of customers. I would also like to announce we have extended the warranty for the 6-speed automatic gearbox used by the CBU Proton X70 to 5 years with unlimited mileage. This is to further benefit our customers and give them added peace of mind,” added Encik Roslan.
