Proton just conducted its second media preview for what’s arguably Malaysia’s most anticipated model for this year, the 2020 Proton X50. This time around, media members sampled some of the best features available in this SUV – its performance, handling, and advanced safety. (more…)
Three years after the Zhejiang Geely Holding Group (Geely) took on a 49.9% equity in Proton, the carmaker is about to launch a second brand new model – the X50. Like the X70, it is also a SUV, catering to the most active segment globally.
It is also a model adapted from one which Geely developed and launched in August 2018 – the Binyue (Coolray outside China) – like the X70, which is why Proton can get completely new models into the market in such a short time. Normally, a new model would take a few years to develop but adapting from an existing model means the main time-consuming (and expensive) engineering work has been done already.
However, just as in the case of the X70 (known as the Boyue in China), a Proton version was not merely doing cosmetic changes and putting a different brand badge on. Until Proton launched the X70, there was no righthand drive version of the model anywhere in the world. And that meant additional engineering work which was more than just moving the steering wheel to the right side. Entirely new parts for righthand drive had to be made too, eg a different dashboard, power window switch panel, centre console, etc.
With the urgency to revive Proton and turn it around, the X70 was initially built in China and sent to Malaysia while the factory in Tg. Malim, which started operations almost 20 years ago, was renovated and improved. With that completed, X70 production was shifted to Malaysia and for the X50, Proton can start off right away making the model locally. And, like the X70 too, it will be the first (and for now, only) righthand drive version of the Binyue.
It is only to be expected that lessons learnt from developing the X70 have made the process of developing the X50 faster. For instance, Azlan Othman and his team at Proton DESIGN had to also get used to a new working culture while rushing work on the X70. With the X50, it would be safe to say they were ‘in the groove’ and also had a chance to ‘customize’ the model a bit more.
4 variants, 2 engine outputs
We don’t have the prices yet, but we do know that there will be 4 variants – Standard, Executive, Premium and, appropriately, Flagship. All of them will be powered by a 1.5-litre 3-cylinder petrol engine with turbocharging. However, the engine in the X50 1.5 TGDi Flagship will have a higher output of 177 ps/255 Nm as it has direct injection. The engine in the other three variants will have port injection and produce 150 ps/226 Nm.
All-wheel drive (AWD) may be nice to have but the cost-vs-benefit doesn’t work well in Malaysia and in any case, most customers don’t really care. So all X50 variants have front-wheel drive only, with a 7-speed dual-clutch transmission. For those who feel AWD gives better grip and stability in the wet, that argument is less relevant with the advanced electronic stability control and traction control systems available today.
More powerful GKUI 19
And talking of electronic systems, the X50 will have a newer generation of the Geely Key User Interface, or GKUI 19. Like computers and smartphones, the processing power of the system becomes greater over time as processors evolve. It also has a graphics processing unit (GPU) which helps in reducing demands on the main processor.
What this means to the user is more responsiveness – perhaps when ‘Hi Proton’ is said, the computer will spend less time ‘thinking’ before responding. Moving to a new generation gave the system designers a chance to revise and refine the interface, simplifying the menu structure while also offering a cleaner layout. The virtual buttons on the 10.25-inch touchscreen (8 inches for the Standard and Premium variants) are large, as they should be to make selection easier. The larger screen also has a resolution of 1920×720 px.
The navigation system in the X70 has sometimes been deficient and to partially address this, Proton has switched to a different digital mapping service. Whether it proves to be better remains to be seen when we get to test the new car. It would be good if there’s Apple CarPlay or Android Auto so smartphone apps like Waze or Google Maps can be transferred into the screen but the X50, like the X70, does not have them yet. It is, however, possible to interface using a mirroring function called QDLink.
An eSIM is provided for all variants, providing the necessary connectivity to the digital world. With the Premium and Flagship variants, it is also possible to start the engine as well as the air-conditioner without being inside the car. This is done using the Proton Link app which also allows setting the desired cooling temperature.
Idling the engine wastes petrol since the car is not going anywhere. But it is necessary if you want the luxury of having a cool cabin when you get in because the air-conditioner compressor needs to be powered. So the maximum time the engine is allowed to run is 10 minutes, after which it shuts down and so does the air-conditioner. If you do get in when the engine is running, you can also move off immediately so hopefully, the locking system is secure enough otherwise someone passing by can just get in and drive off!
Safety & ADAS
ABS with EBD and Brake Assist, Electronic Stability Control, Hill-start Assist, Hill Descent Control and Reverse Camera are standard active safety systems across the range. All variants also have a minimum of 4 airbags – front and sides – as well as ISOFIX points at the rear for compatible childseats. The Premium and Flagship variants have additional window curtain airbags and the camera system gives a 360-degree top-down view, as well as a tyre pressure monitoring system.
The X50 Flagship has an Advanced Driver Assistance System (ADAS) like the top version of the X70. However, the one in the new model is more advanced and can even operate with Level 2 autonomy. At this level, which is one of 5 levels, the brakes will activate automatically (if the driver does not act) if an accident is predicted as a vehicle or pedestrian are detected in front with the camera and radar.
The cruise control is also adaptive, adjusting the speed to maintain a safe gap and can even drop to standstill and resume moving in accordance with the vehicle ahead. Other ADAS features are keeping the car within a lane, automatically switching from high beam to low beam and a blind spot monitor.
The X50 Flagship can also carry park itself, which should be welcome by those who find difficulty doing so. It’s an amazing system which uses the sensors around the body to position the car and all the driver has to do is work the accelerator pedal. Once this feature become standard in all vehicles, there won’t be a need for parking skill when taking a driving test!
Feature differences of each variant
The list of main differentiating features in each variant are shown below and you get 6 body colours to choose from.
In the coming weeks leading to the official launch within a month’s time, we’ll be given more information on other aspects of the X50. As it will be launched within the period when the 10% sales tax is exempted, its price will differ from those registered after December 31, 2020 when the exemption incentive ends. So if you want to save money, order one quickly and it will cost you only RM500 to make a booking which will be accepted from tomorrow (September 16).
Vote for the X50 slogan
While the name has been revealed (not that it was a big secret, except that Proton never really confirmed it), the company is still undecided about the slogan to use for the new model. So, just as with the X70 when the public was invited to vote (for the model name), Proton is again inviting the public to vote for the slogan this time.
There are four slogans: Intelligence that Amazes, Intelligence that Leads, Intelligence that Exceeds, and Intelligence that Lives. We don’t see the page for voting tonight and maybe it will be open when bookings start tomorrow so visit www.proton.com to stay updated if you want to vote.
Brunei was the first export market for the Proton X70 and now the upgraded units from the Tanjung Malim plant are also being exported there. Launched recently, the X70 is available in Brunei in three variants – Standard, Executive and Premium X. Prices start from BND36,000 (about RM110,000) and as a launch promotion, buyers can get a rebate of BND1,500 (about RM4,600).
In Brunei, the X70 has ranked among the top three in its segment despite having barely had a full year of sales. The country has not escaped the effects of the COVID-19 pandemic on business and its new vehicle sales have also gone through a period of decline this year. However, with 7,609 units sold up to the end of July. It appears that the market is trending towards at least being on par with last year.
PAD Motors Proton Brunei, the distributor for Proton in the country, offers customers a 5-year warranty with no limit on mileage and free labour for 5 visits. Earlier in 2020, it also launched the updated Iriz, Saga and Persona.
“Proton is excited the Malaysian-made 2020 Proton X70 has been launched in its first export market as exports will play an increasingly important role in growing our sales. With its combination of innovative features and comprehensive list of safety equipment, we believe the X70 will gain support from car buyers not only in Brunei, where it has already attracted a strong following, but also wherever it is sold around the world,” said Roslan Abdullah, CEO of Proton Edar.
Meanwhile, in Malaysia, Proton is preparing for the launch of the new X50 SUV following the roll-out of the first units next week. Already shown momentarily in a Merdeka video created by the carmaker, the model goes straight into local manufacture, unlike the X70 which was initially made in China. It is adapted from Geely’s Binyue/Coolray. It is expected to have a 1.5-litre, turbocharged 3-cylinder engine with a dual-clutch transmission which is the popular specification for the model that is also being sold in the Philippines.
Proton’s cumulative sales volume higher than 2019 in spite of MCO shutdown
When automotive historians look back on 2020, it will be regarded as a dark period for the industry. Factories had to shut down for long periods, along with showrooms, and sales came to a standstill for a couple of months. It was an unprecedented situation; even during the worst recessions, business still continued.
However, it appears that the industry is recovering steadily and where the Malaysian market is concerned, the Total Industry Volume of new vehicles sold exceeded 50,000 units for the second month in a row. That’s partly due to the government exempting sales tax, which lowers the retail price, but there would also have been people who had to defer their purchases in March and April.
Market share estimated at 21.7%
For Proton, things have been going well with yet another great month – its second best – in August. During the month, 11,378 units were sold, an improvement of 24.7% over the same month in 2019. With this volume, the brand’s market share for the month is forecast at 21.6% while its year-to-date market share is estimated to be 21.7%.
With 61,672 sales so far in 2020, Proton‘s cumulative sales volume after 8 months is 46 units ahead of the same period from the previous year. The achievement is particularly noteworthy as sales in March, April and May were affected by the Movement Control Order (MCO).
The company also states that three of its models were sales leaders in their respective segments although we wonder how they determine that when the official data for individual model sales of other brands is not released. In any case, the powerful Competition Commission makes it an offence to share such information. This was declared some years back with the Competition Commissioner saying that if such data is shared by the industry, ‘the prices of spare parts will go up’. As a result, the Malaysian Automotive Association stopped releasing model sales data and the data can only be made public 12 months later.
“Proton is pleasantly surprised by how quickly we have been able to recover the lost sales during the MCO period, as it only took us three months to get back on track. By exceeding our YTD volume in August 2019, we are quietly confident of recovery from the headwinds of COVID-19. The positive effect this has on the company, our employees and the vendor community cannot be understated and we hope to continue this trend until the end of the year so as to give the automotive industry ecosystem a strong boost,” said Roslan Abdullah, CEO of Proton Edar.
Tax-free incentive helps boost Proton sales to highest volume in over 8 years
Tax-free incentive helps boost Proton sales to highest volume in over 8 years
Like many other carmakers that had Takata airbag systems installed in their vehicles, Proton has been trying to get owners to bring their cars – restricted only to the Perdana model – to the service centre for a replacement. The Takata airbag issue has been ongoing since 2013 with millions of vehicles recalled worldwide.
Replacements in stalled in 87.5% of affected cars
Proton issued its recall to Perdana owners in January 2019 and since then, the carmaker says it has replaced the defective inflator modules on the airbag system of the front passenger side in 87.5% or 5,625 units of the total of 6,342 units affected as of August 18, 2020. It is appealing to owners of the remaining Perdanas to bring their cars to an authorised Proton service centre as soon as possible to make the replacement.
Proton reassures its customers that other Proton models are not affected as they use airbags supplied by a different vendor.
Affected cars built from 2012 – end August 2018
The cars affected are those which were built from 2012 until the end of August 2018. They had originally been fitted with airbag systems that had inflator modules which were known to explode due to over-pressure during the inflation process. This would result in a break-up of the module and sharp metal parts would be shot towards the front passenger. Serious injuries were a high possibility, with deaths also having occurred in some cases.
Actually, Proton initially did not issue a recall as it had information that indicated that the Perdana, though being adapted from the Honda Accord which was subject to recall, was not affected. At that time, the volume of new Perdanas sold was around 3,000 units. Responding to a query by this writer in June 2016, Proton said that they had consulted with Honda as well as conducted crash tests of the new Perdana in Spain in May 2016 and ‘no abnormalities to the function of the airbags were found’.
“Thanks to the joint efforts of our staff and dealers, Proton managed to contact our customers and have performed the airbag inflator replacement exercise,” said Roslan Abdullah, CEO of Proton Edar. Encik Roslan was a key figure in managing the recall exercise when he was COO at Honda Malaysia which carried out the most extensive airbag recall campaign in Malaysia.
Contact details may not be updated
“The safety of our customers is of the utmost importance. However, we have not been able to connect with all affected owners due to obsolete or incomplete contact information. Therefore, we would like to urge all Proton Perdana owners who have not had their passenger airbag inflators replaced to call our service centres to book an appointment as soon as possible. Replacement of the inflator will take approximately one hour and will be performed free of charge,” he said, adding that cars built after August 31 2018 are not affected.
As with other carmakers, contacting present owners of the cars is not always possible because ownership may have changed. Proton Edar may have only the contact details of the first owner who bought the car and unless a new owner informed Proton Edar, they would be unaware and can only send a notification to the address of the original owner.
If you are uncertain whether your Perdana is affected, you can call Proton’s Customer Care at 1-800-888-398 or write to customercare@proton.com.
Proton is intent on growing its volumes as quickly as possible and while its domestic sales are increasing all the time, it is also giving more attention to sales in other countries. Additionally, it is also in discussions with some business partners in some countries to have its cars assembled locally. Like in Malaysia, there would be preferential tax imposed which will be beneficial to Proton as it can then price its cars more attractively.
First CKD shipment to Kenya
Recently, the carmaker shipped 30 units of the Saga to Kenya in CKD (completely knocked-down) form, meaning the many parts were sent there as kits and will be assembled by Simba Corporation, a diversified conglomerate with a long history of sales and assembly experience in the automotive industry.
Proton’s decision to export the Saga in a CKD form was made following close consultation with its Kenyan partner, Simba. Aside from attracting lower taxes by being locally assembled, CKD units will help spur development in Kenya’s automotive manufacturing industry.
“While strengthening Proton’s domestic position is critical to truly be acknowledged as an international carmaker, we need to see our products in places as diverse as Bangkok, Islamabad, Cairo and now, Nairobi. On a national level, this will also increase the value of trade between Malaysia and Kenya and help to contribute to the creation of jobs in Kenya’s automotive industry,” said Dato’ Radzaif Mohamed, Deputy CEO of Proton.
Kenya is not a new market for Proton and in earlier years, it was among the 50+ countries where Proton sold its cars. However, the volumes were not big and when the 2000s began, the company reduced its focus on export markets. It is only in recent years that export plans have been formulated again and with new models in the pipeline, export sales are to become increasingly important.
Proton’s export offensive underway with updated models launched in Brunei
Having your own transport can certainly make life a lot easier – no need to get up earlier to catch public transport, more flexibility in daily movements and these days, less worry about crowded buses or coaches where there is a risk of getting infected with COVID-19. For graduates who are just starting to work, getting a loan to buy a car can sometimes be difficult as they don’t have a past record. Many loan applications require at least 3 months of prior employment and furthermore, they may also charge high interest rates initially.
Proton Commerce Sdn. Bhd. (PCSB), a unit of the Proton Group, understands this situation and has a campaign that provides fresh graduates with an opportunity to own their first car with low Hire-Purchase (H-P) loan rates. The campaign is on until December 31, 2020, coinciding with the sales tax holiday currently being offered for all Proton models.
Easier to qualify
This campaign only requires a letter of employment or a month’s salary slip in order to qualify for a loan. Starting at just 2.98% per annum, the rate offered by PCSB is currently one of the lowest in the segment. Basic requirements for a customer include being a graduate (minimum qualification diploma), be aged between 18-30 years, and have a job with a minimum salary of RM1,500.
“In today’s connected economy, mobility is important for young adults just entering the workforce. It provides a sense of empowerment and autonomy to these graduates. We are confident that this package will assist fresh graduates to own a car, as monthly repayments start from as low as RM239 per month,” said Mooi Fi Phang, Chief Executive Officer of PCSB.
Lower interest rates
According to Mr. Mooi, the H-P loan industry is projected to experience a surge in the near future, as a result of recent reduction in the reduction of the Overnight Policy Rate and the exemption of sales tax for passenger vehicles. Therefore, in addition to the Fresh Graduate Campaign package, PCSB reduced the overall offering interest rates to as low as 2.22% based on customer creditability and margin of finance. This means customers would directly benefit as their lower monthly repayment would enable them to use the savings on essentials, and conserve some funds for emergencies.
Revised Proton prices with additional ‘Tax Holiday’ Promotion
2020 will be remembered as a very bad year for the auto industry in Malaysia and other countries. The COVID-19 pandemic stopped sales (and production) leading to unprecedented contraction of markets by nearly 100%. When business was allowed to resume, consumers remained still worried about uncertainties of the future, leading to more cautious spending/
This of course doesn’t help the economy to recover so the government has had to allocate billions for aid to various sectors to provide incentives to consumers and encourage them to start buying. For the auto industry, the assistance is in the form of exemption of sales tax, which will be given till the end of the year.
The incentive seems to work as most companies have reported high sales numbers, although the Malaysian Automotive Association (MAA) expects that when the year ends, the Total Industry Volume (TIV) will be around 470,000 units – 22.2% or 134,287 units lower than the TIV in 2019.
Among the companies experiencing healthy sales numbers is Proton which reports that its total sales volume in July was its highest since June 2012. Compared to June 2020, the increase was 37.2% while compared to July 2019, it was 45.7%. And with 13,216 units delivered, the carmaker estimates that it should have a market share of 63.2% of the TIV for the month.
Four models are said to have topped their respective segments. The Saga, with 5,421 units (including all 1,100 units of the 35th anniversary edition) sold led in the A-segment. The popular X70 recorded its best month since being launched as 3,087 units of the SUV were delivered to new owners nationwide.
The other two Proton segment leaders were the Persona and Exora, with 3,043 units and 792 units, respectively, sold in July.
“Proton’s performance in July 2020 was our best in over 8 years. We are especially happy with how our models are faring within their segments. We also note that there has been a positive effect on other areas of the business as a result of the encouraging sales. For instance, Proton Commerce, our in-house vehicle financing provider, saw an increase of 100% in the number of loans it disbursed compared to the previous month. Therefore, we are thankful for the support shown by all Malaysians and as for now, we remain cautiously optimistic for 2020,” said Roslan Abdullah, CEO of Proton Edar.
“For August, Proton aims to continue to excite the market and stimulate sales in preparation for more model introductions later in the year. Our production, quality, sales and aftersales divisions are all working hard to ensure we are able to meet consumer demand as well as deliver a level of customer service befitting the brand promise that we have set out,” he added.
Proton Used Car Management division sees increasing business
According to the President of the Malaysian Automotive Association (MAA), sales of used vehicles saw significant growth during the first 6 months of this year. While sales of all vehicles, new and used, were suspended for some months due to the Movement Control Order (MCO) and closure of businesses, when sales activity resumed, many people headed for used car lots to look for lower-priced vehicles.
The reason for this new buying pattern is believed to be concern about using public transport which has risks of COVID-19 infection due to the crowded environment. As such, many people would rather have their own transport and are buying a used car which would be more affordable than a new one.
While Proton’s main business is making and selling new vehicles, it also realises that the used car business represents a critical component of the automotive value chain. Therefore, as part of its overall strategy, it started to develop a Used Car Management (UCM) department so as to streamline the sales and distribution of used cars in support of new car sales.
Pilot project began at 8 outlets
The UCM division began operations in 2019 with a pilot project consisting of 8 outlets located in various dealerships. The initial period was used to establish operating procedures and to train used car inspectors who would manage transactions in each outlet. In 2020, the goal is to have operations established at 36 3S/4S outlets nationwide.
“With Proton’s sales growing quickly and expected to increase over the coming years, the role of used car management has become more important as we assist customers who need to dispose of their used vehicles. When we started the UCM division in 2019, the goals set were to support new car sales and to improve the resale value of Proton cars,” explained Brian Cheah, Head of Used Car Management.
The target set for UCM is for replacement sales, where a current owner trades in a Proton model for a new one, to account for a minimum of 10% of the volume for outlets with UCM operations. The company has also established programmes to help achieve the target such as Proton Xchange, designed to encourage current owners to replace their current cars with the latest Proton model.
Proton Certified Pre-Owned
With regard to the sale of trade-ins, cars sold by UCM will be marketed under the Proton Certified Pre-Owned (PCPO) banner. All PCPO vehicles undergo a comprehensive 201-point inspection and are guaranteed to have never suffered any flood or major structural damage due to accidents. They also get a 1-year extended warranty covering the engine and transmission and are eligible for a one-time free service (engine oil and oil filter only) up to 6 months after their registration date.
“In the future, UCM will set up a dedicated Proton used car portal with an online selling platform to attract tech- savvy used car buyers. Potential customers will be able to view our stock remotely and they can also browse the website to get estimated valuations for their current cars,” said Mr. Cheah.
UCM outlets get more sales
Despite being relatively new to the market, the UCM outlets have already had a positive impact. “We started the UCM program in October 2019 and it has helped our Sales Advisors to close deals as we can now offer competitive trade-in value for used Proton cars,” said Ryan Lai, MD of LHM One Stop Car Service Centre, a PROTON 4S dealership in Nilai, Negeri Sembilan.
Judith Yam, MD of Atiara Johan, a 4S outlet in Puchong, Selangor, revealed that the dealership has recorded over 130 trade-in transactions. “Since it was established, UCM boosted our sales by offering special incentives for customers who are current Proton owners. they see as a value-added service that allows them to easily purchase a new Proton,” she explained.
Revised Proton prices with additional ‘Tax Holiday’ Promotion
To celebrate the 35th anniversary of the Proton Saga today, the carmaker has produced a special edition and only 1,100 units will be available, each priced at RM39,300 without insurance. While the price is the same as that of the Saga Premium version, there are extra accessories and special aesthetic treatment to make the special edition exclusive.
Firstly, a sporty theme has been chosen for this edition and that may have been influenced by the successes of R3, the carmaker’s motorsports division. If you look at the colour choices for the Saga, you won’t see a black colour among the five available. So it’s an exclusive colour specially for the anniversary edition. Coincidentally, the choice of black is a total opposite of the white-themed Saga for Proton’s 25th anniversary celebration.
The shiny black body colour has yellow highlights below the grille (which has the Infinity Weave design) and lower edge of the front and rear bumpers. The yellow accents also run the length of the side skirts and for the entire door mirror housings. You may also notice that while the alloy wheels are the same larger 15-inch ones, they have a grey finish.
The equipment level is the Premium grade, of course, so you get things like LED Daytime Running Lamps, a 7-inch touchscreen display, switches for adjusting the audio system on the steering wheel and handsfree telephony.
As the pictures show, the interior has the same dark theme but with the yellow accent treatment like the exterior in some areas. This includes the rims of the two meters and the adjustment tab on the outer air vents.
Strangely, there’s no mention of any special ’35th anniversary’ plaque or badge to identify these exclusive editions. It would be nice to have such an item as these cars are special.
The powertrain is the proven 1332 cc 4-cylinder 16-valve engine with variable valve timing to enhance fuel efficiency. It delivers 95 ps/120 Nm which provides brisk performance for the 1,080-kg car. Only a 4-speed automatic transmission is available. In case you’re not aware, Proton replaced the CVT about a year ago with a conventional torque converter type transmission.
Also announced unveiled during the online this morning was the 35th Anniversary Accessories package which consists of Front Skirting, Side Skirtings, Door Visors, Bonnet Insulator, Boot Lid Cover and Boot Tray. It is price at RM2,035 and is available for purchase separately for installation on the 2019 Saga onwards. The value of the package is actually RM2,350 but Proton is offering it for RM315 less.
“The Saga Anniversary Edition is a special gift for a special occasion to all Malaysians. It is our way of saying ‘thank you’ for supporting the Saga for the past 35 years. Plus, you can order it today by visiting our showrooms or booking online,” said Dr. Li Chunrong, CEO of Proton.
Proton has also announced today that its N95 Cabin Filter, previously only available with the X70 SUV, will be available for Saga, Persona, Iriz and Exora (for models registered after July 9, 2020). Current owners have the option of purchasing the filter for RM59 (excluding labour charges). For a limited period until October 9, 2020 there will be a 15% discount on the price of the filter.
The N95 Cabin Filter, as the name suggests, can remove 95% of particles that are larger than 0.3 microns. Additionally, it can remove 98% of PM2.5 dust particulates, which is important to promote respiratory health. PM2.5 particles are very tiny – about 3% the diameter of human hair – so it requires a very fine filter to stop them from entering the cabin. Apart from effectively filtering smoke particulates, dust and bacteria; the N95 filter can help to promote an allergy-free environment by reducing allergens from pets, aphids and pollen.
The N95 Cabin Filter is an integral part of the air-conditioning system in the X70. It can function in both fresh and recirculation modes, as long as the blower fan is switched on. There’s no need to activate it as it works all the time to filter the air passing through, whether it is drawn in in from outside or recirculated air.
LOOKING BACK – Remembering the birth of the Proton Saga and what it meant to the nation
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