Visitors to the Proton Centre of Excellence (CoE) which is also the head office complex of the Malaysian carmaker will remember an area where the company’s history and milestone models were displayed. That area was cleared some time back and in its place is a brand new Gallery of Inspiration which marks the next step in the company’s rebranding journey that began in 2019.
Comprising several zones, the Gallery of Inspiration showcases Proton’s history, inclusiveness with stakeholders in Malaysia’s automotive industry, domestic and global network, as well as current and future technologies. Everything is presented in a seamlessly integrated display that utilizes virtual reality (VR) and augmented reality (AR) for an immersive experience. The gallery includes the first Proton Cafe outlet (which suggests others may be set up at outlets) and a collection of historical Proton models.
Showcasing Proton’s journey
“As the country’s first carmaker, the history of Proton and Malaysia’s automotive industry are intrinsically linked. We have achieved many firsts and introduced various innovations through the years and that journey is proudly shared in the Gallery of Inspiration. At the same time, our products have developed rapidly the last few years so we are also taking this opportunity to show car-buyers what the future holds and what they can expect from Proton,” said Roslan Abdullah, Chief Executive Officer, Proton Edar.
One-stop experience
Situating the brand gallery at the Centre of Excellence allows visitors to have a true one-stop experience. At the adjacent Crystal Showroom, they can view, test drive, and book the latest models. Those who are owners can also visit the premier service centre in the same complex.
“We invested substantial resources on the Gallery of Inspiration and will update the information as Proton adds more milestones and models to its portfolio. As for the name, it is our hope that visitors will be inspired by our story, and it ignites a spark that sets them off on their own journey regardless of their field of interest. Of course, it also ties in with our slogan of Inspiring Connections and helps to strengthen the brand story and messaging with our customers,” added Encik Roslan.
The Proton Gallery on Inspiration is open to the public from Mondays to Fridays between 8.30 am – 5.30 pm. Click here for the location of the CoE which can be shown on Google Maps.
The COVID-19 pandemic affected business activity all over the world, impacting sales and delaying projects. But now that the situation is easing, many activities are quickly resuming and some projects that may have been suspended can now proceed. One of them is the local assembly of Protons in Pakistan at the factory which was under construction since March 2019. Recently, the first units of the Saga began to come off the production lines, setting a new milestone for Proton.
The Saga is the first Proton model to be assembled by Al-Haj Automotive, the exclusive distributor of Proton models in Pakistan, at their new greenfield factory in Karachi. The plant, built with an initial investment of US$20 million (about RM83.1 million), will create 2,000 direct employment opportunities in its first three years of operations. It is estimated that a further 20,000 indirect jobs will also be created as a result of the new plant being established.
25,000 units a year
The initial capacity of 25,000 units a year is expected to meet the potential sales volume of the market which was about 128,000 units in 2020 but higher at around 193,000 units the year before the pandemic affected the country. As with the case in Malaysia, local assembly means that the retail prices can be lower due to more favourable taxation, a critical element in Proton’s aim to grow exports in the future.
Speaking during the roll-out ceremony, Hilal Khan Alfridi, Chief Executive Officer of Al-Haj Automotive said: “The successful assembly of the Proton Saga in Pakistan is the culmination of the hard-work and untiring efforts of Proton, the entire Al-Haj team, its suppliers and vendors. Even with COVID-19 restrictions in place, we continued to push to build our new assembly plant and as such, we are confident it will set new industry standards and enable us to introduce more products that meet the international quality levels set by Proton.”
X70 assembly to follow
The X70 SUV is to be second model assembled in Pakistan. Launched in December 2020 as an imported CBU model, the X70 met with positive response. Together with the final batch, the total number exported to Pakistan is 602 units. The first locally-assembled units are expected to be available by the end of this year.
The President of Pakistan viewing one of the first locally-assembled Proton cars.
“Despite COVID-19 severely affecting our project timelines in Pakistan, demand for Proton models in the country remains high for both the Proton Saga and Proton X70 attracting a strong following. Al-Haj has received 2,500 orders for the Saga and over 2,000 orders have been placed for the X70, so we wish to thank the customers for their belief in our products and especially their patience and understanding over the delays in receiving their cars,” said Roslan Abdullah, CEO of Proton Edar.
“Now that the final shipment is on the way and local assembly has started for the Saga with the X70 to roll off the production line before the end of the year, we can finally work to catch up to market demand. This will allow Al-Haj Automotive and Proton to establish a strong market presence in the country to benefit future sales growth,” he added.
Final shipment of Proton X70s from Malaysia to Pakistan.
Sharing assembly expertise
With export sales being one of the pillars to achieving its long-term goals, Proton’s commitment to the Pakistan market extends beyond the shipment of CKD packs and consumable parts. It also includes human resources and there are currently 20 Proton staff specialising in various manufacturing related fields stationed in Karachi to assist in assembly operations.
“After 37 years of vehicle assembly experience, Proton has accumulated a wealth of in-house expertise that can be shared with our overseas partner. Having operated in various market conditions, we can quickly adapt to different scenarios, so we hope to be able to play a major role in ensuring the success of the brand in Pakistan,” Encik Roslan said.
There are many brands of engine oil in the market and all the reputable ones can do a good job of lubricating and protecting the engine. With Genuine Oils, however, the specifications and formulation of the oils are specially tailored for the carmaker’s vehicles and therefore should provide optimum performance. Each manufacturer can claim that their Genuine Oil offers the best performance and this may be true too because the engineers who may have worked on the engines know exactly what is needed.
Proton has just launched a new range of Genuine Oils (PGO) which have been developed in collaboration with its technical partner, Petronas. The oils meet the most recent standards specified by the American Petroleum Institute (API), which motorists would be familiar with. The top fully synthetic grade meets the latest API SP standard (5-litre pack only), while the others meet API SN.
In terms of viscosity, the fully synthetic PGO has a viscosity of SAE 5W-30 and 10W-30, the latter meeting the API SN service standard and available only in a 4-litre pack. Then there is a semi-synthetic grade which has passed the API SN standard and has a 10W-30 viscosity, while the mineral oil is 15W-40 and also meets the API SN standard.
The new Genuine Oils are available at all authorised Proton service centres and will also be available from parts stockists. However, for the time being, the parts stockists will carry only the semi-synthetic and mineral PGO.
“The launch of PGO lubricants is another step in Proton’s journey to being a premium Malaysian automotive brand. We worked closely with our partners on the formulation to ensure it met our exacting requirements and offers our customers the engine protection their Proton models deserve at an affordable price. By having a full list of products, we are also able to cover our entire model range including the latest TGDI engines used by our SUVs,” said Roslan Abdullah, CEO of Proton Edar.
The advantage of Genuine Oils
Many authorised service centres of the various brands have a policy that the only oil that can be used is what they supply, which is often a Genuine Oil of the brand or one approved by the carmaker. Customers might not be allowed to bring their own oil to use. Furthermore, warranty conditions may also force owners to use the oil supplied by the service centre and could become void if an ‘unauthorised’ oil is used.
Understandably, this is something that not all owners may agree with. They may feel it is their right to choose their own oil, and they might even be able to buy it for less and save money. However, there are also valid reasons why service centres insist on their oil being used and why the warranty can be at risk if another oil is used.
Firstly, the oil supplied will be the one that meets the requirements of the manufacturer, especially if it is a genuine oil. These requirements, in simplified form, are usually found in the Owner’s Manual and focus on two things – the API standard and the viscosity. If the customer can meet both requirements, there shouldn’t be an issue.
But then there is the question of quality of the oil brought in by the customer. Some may unknowingly buy recycled oil or oil that is of a poor quality but sold as if it meets all the standards. They may not be aware and think that they are saving money. If this inferior oil goes into their engine because they insist on using it, who will be responsible if the engine has problems or even gets damaged? Would it be fair on the manufacturer to accept responsibility when the oil used was not one they were assured of quality?
For this reason, manufacturers want to have control on the products used and if something does go wrong, then they can justifiably provide compensation. Many consumers may not understand this point but it is one of the reasons why, during the warranty period, you need to comply with the requirements.
Once the warranty period is over, then you are free to use whatever oil you wish and go to whichever service centre you to go to. So it is best to be patient and abide by the requirements. Besides, many authorised service centres today have amenities for owners, like complimentary food and drink, so you can have a good ownership experience.
Proton, like other carmakers in Malaysia, has been seeing a steady sales growth since the government allowed businesses to start operating again from the middle of August. While there were only two weeks of operations in August and many sales outlets also had to prepare their premises to meet SOPs, September was a full month and customers began returning to showrooms.
For Proton, September was very encouraging as the total number of vehicles sold (including exports) was 10,380 units. The company estimates that the Total Industry Volume for the month will be around 43,500 units and, on that basis, Proton’s share would be 23.9%. This would keep it in second place in overall sales for 2021.
September’s sales volume takes the cumulative volume sold to 73,017 units after 8 months. That’s almost similar to the 73,547 units over the same period in 2020 although this year, Proton’s market share to date is slightly higher at 23% compared to 21.5%.
Although there is usually more news about the newer models like the X70 and X50, it was the Saga that was Proton’s bestseller in September. 3,907 units were sold, a number said to be the highest in the A-segment.
The newly launched Iriz and Persona also recorded strong first month sales. Even though production was affected by a shortage of components, the factory still managed to release 1,440 units of the Persona and 749 units of the Iriz (including the new Active variant) which were immediately delivered to customers.
As for the hotselling SUVs, deliveries accelerated to catch up with demand. For the X50, 2,431 units were delivered while 1,577 units of the X70 reached their new owners. To date in 2021, 27,312 units of SUVs have been sold by Proton which accounts for 37.4% of the overall year’s sales of 73,017 units.
“As the numbers show, sales were strong for Proton in September, so we are happy with the results. While we could have sold more than the 10,380 units achieved, some context should be given to our performance as Malaysia is recovering from a pandemic that is still affecting our vendors. The situation is slowly improving but the shortage of chips and other components is a real issue that will not change in the short term, so we must exercise caution when trying to forecast sales as production volumes remain subject to change,” explained Roslan Abdullah, CEO of Proton Edar.
“Therefore, for the remaining three months of the year, Proton will concentrate on meeting our commitments to our customers and delivering as many cars as possible. Clearing the backlog will free up more volume for the next calendar year and help us move forward with plans to expand our offerings both locally and in export markets,” he said.
Encik Roslan said that while there is growth in the number of bookings made online, Proton and its dealers have made big investments to upgrade the sales and service network the last few years. “The best brand experience is still delivered in person, so we have adopted new operational procedures in light of the pandemic situation,” he added.
With all states in Phase 2 or higher of the National Recovery Plan, all Proton outlets and service centres have now reopened nationwide. While operations remain governed by strict SOPs to limit the physical number of people at a facility, fully vaccinated customers can visit showrooms to view and test drive the company’s range of offerings.
Vaccination does not make you immune to COVID-19 infection. You can still get infected and although you may not show symptoms, you can spread the coronavirus to others. Do not stop taking protective measures such as wearing a facemask, washing hands frequently and social distancing.
PIKAS (Program Imunisasi Industri COVID-19 Kerjasama Awam-Swasta), the public-private partnership immunisation program for employees in the manufacturing sector, has been helping speed up vaccination of the Malaysian population. The large workforces of both Malaysian carmakers – Perodua and Proton – as well as those in businesses associated with them have receive vaccinations over the past weeks.
Proton reports that, following the second round of vaccinations last week, over 86% of its 8,486 employees are now fully vaccinated for protection against COVID-19 infection. The number is expected to increase over the coming weeks as 98% have already received their first dose, in line with the company’s aim to achieve herd immunity in its chain of operations.
As with the first round of vaccinations, the sports complex at the company’s Tanjung Malim plant in Perak was repurposed as an industry vaccine dispensing centre, catering for staff and vendors in the area, while those based in Shah Alam went to the Shah Alam Convention Centre in Selangor.
“PROTON is pleased to announce our PIKAS vaccination programme has been a resounding success. There are more than 60,000 people in our business ecosystem, including staff from vendors and dealers, so we are thankful to MITI, MOSTI and the Ministry of Health for their guidance to coordinate such a mammoth task and ensuring everyone registered on MySejahtera has been given the vaccine,” said Dr Li Chunrong, CEO of Proton.
80% already received one dose
“We estimate more than 80% of our operations chain would have received at least one dose of the vaccine by the end of August and this helps to ensure Proton is able to hit the ground running once the automotive industry is given the greenlight to resume operations nationwide,” he added.
To prepare for resumption of business activities, the carmaker has relooked at its business procedures to reduce the likelihood of infections being spread. Procedures at retail operations have been further tightened to protect customers and staff alike while production processes at all the plants have been scrutinised for any possible risk of infection to both downstream and upstream operations.
“Proton is committed to helping Malaysia lower the number of COVID-19 infections to quickly achieve the milestones in the National Recovery Plan. We have created new processes in all areas, from our production lines to our corporate offices, ensuring a new and safer work environment. It also means strict new rules will be enforced throughout the company and measures such as virtual meetings and splitting work between home and the office will be the norm for the near future,” Dr. Li said.
Perodua employees and suppliers vaccinated
At Perodua too, PIKAS has been used to organise a vaccination exercise for the employees and suppliers. Some 13,000 Perodua employees and suppliers have received the first dose of the vaccine at the Perodua Vaccination Centre since the end of July.
The vaccination facility is within the Perodua manufacturing complex in Sg. Choh, Selangor. Besides maintaining a high level of hygienic cleanliness by daily sanitization, there are also strict security checks at the main entrance to control movements so that there is no crowding.
Perodua’s initiative will not only prepare its workforce for the time when operations are allowed to resume but also contribute to ensuring protection against COVID-19 infection for a large proportion of the people in the Hulu Selangor district where the carmaker’s headquarters and factories are located.
Malaysians know Edaran Otomobil Nasional Berhad or EON very well. After all, it was the company that was established together with Proton and given the responsibility to distribute and market the National Car. While things have changed over the years, EON (a subsidiary of DRB-HICOM Berhad) is still the largest dealer chain handling Proton products today.
Over the years, EON has continuously evolved as times have changed. Even its logo has undergone refreshing periodically while its retail outlets and service centres have been upgraded.
Although EON has been involved in other brands (such as Volkswagen, Audi and Mitsubishi), Proton is still its most important and in view of this, the company now has a dedicated Proton Division website. Created with the user experience in mind, the newly-designed website includes many features to help users quickly and easily navigate and browse for the many Proton models.
Everything to do with Proton
The integrated platform allows customers to find out about the latest promotions, book a test drive, reserve their next service appointment and even calculate monthly instalments for vehicle loans. They can do all this from a smartphone or tablet in the comfort of their home or office, or even a restaurant (when we can dine-in again).
Akkbar Danial, Head of Automotive Distribution of DRB-HICOM and Chief Executive Officer of EON, believes that the possibilities are endless for brands with a strong online presence as a website not only provides massive opportunity for business growth, but is also at the heart of the car buying process today.
“A new website was overdue. With over 80% of Malaysian car buyers doing their research online before making a purchase, it is only logical to have a website, and a good one that works well on personal computers, smartphones and tablets,” he said, adding that there is also a virtual showroom to visit when showrooms are closed for any reason.
“As the single largest Proton dealer in Malaysia, we aim to be the preferred automobile dealer nationwide by positioning ourselves and bringing customers to the forefront of our ‘stores’. Through the website, the most accurate, up-to-date information and promotions regarding our products are easily accessible for our current and prospective customers to make informed car-buying decisions,” Encik Akkbar added.
Beyond distribution and an extensive after-sales network, EON also provides customised solutions for corporate clients under the Proton Fleet Programme, targeted at fleet operators.
Latest campaign from EON
In conjunction with the launch of the new website, EON is partnering with Shell Malaysia in a campaign that offers Shell Vouchers as a token of appreciation. The campaign is for all customers who place a booking and register their new Proton vehicle with EON outlets from August 1 until October 31, 2021. The vouchers, which can be used nationwide for purchases of fuel as well as items at Shell SELECT Stores (excluding tobacco products, e-Pay reloads and Touch ‘N Go top-ups), will be valid until February 28, 2022.
The auto industry is still having most of its normal activities suspended, as ordered by the government, but for some, new model introductions need to go ahead as planned. Proton is one of the companies that planned to launch the new versions of its Iriz and Persona, and has gone ahead to do so today using online channels (which can also be used to make bookings).
Updating exercises for both models
The two new models are well established products but have been in the market some time so updating is needed. Proton DESIGN has incorporated new styling elements which continue to use the Infinite Weave with Ethereal Bow grille. As with such updating exercises, the designers have also taken the opportunity to restyle the bumpers and some areas of the lighting units. Such cosmetic changes do not require changes to sheet metal so they are less costly to do.
On the Iriz, the grille has a new profile with a red highlight whilst the Persona’s comes has more chrome for greater distinctiveness. The top versions of both models also have black roofs.
The LED headlamps (not available for the standard variants) have the convenience of automatic on/off as well as a ‘follow me home’ function which keeps them on for a while after the engine is switched off. This is to provide illumination while walking to the front door of the home.
Other new features include new styling for the 16-inch alloy wheels and new finishing on the rear combination lamps. There are also new body colours – Space Grey for the Persona and Citric Orange and Passion Red for the Iriz, which would be aimed at younger buyers.
Concept finally becomes a production model
The Iriz finally gets the sporty Active variant which was shown as a concept some 7 years ago. Back then, there was a trend towards adding ‘SUV elements’ to cars and Proton DESIGN came out with the concept. According to the Head of Proton DESIGN, it was one of those ‘skunkworks’ projects that the design team did quietly in their studio.
The Iriz Active concept which the designers at Proton DESIGN created as a ‘side project’ of their own.
“It wasn’t in the development timeline of the then freshly launched Iriz, so the whole premise was to project the future. Based on foresight and a hunch, I believe it achieved what it was created to do,” he recalled
Sportier lifestyle image
Though having the same shape and dimensions, the hatchback has moulding that runs around the body to add distinctiveness. A black roof with roof rails adds the ‘SUV touch’, while the 16-inch wheels have a new design.
The cabin of the Iriz Active has red highlights using embroidery on the front seats, door trim and carpet mats, as well as red stitching on the steering wheel and seatbelts with red straps. Red is also used on other areas to highlight the different forms. There are also aluminium sport pedals for a sporty look and feel.
More premium cabin for Persona
While the Iriz Active has a sporty interior, the new Persona Premium gets seats and door trim upholstered in brown leatherette (in the same shade that debuted on the Proton X70) to complement the enhanced interior design and give a more premium image.
A noticeable change to the interior of both the Iriz and Persona is the new 8-inch floating infotainment display panel. This ‘command centre’ has voice command functions that have been updated to control the air-conditioning system and driver’s window. Starting off with ‘Hi Proton’ and then saying certain commences, actions can be executed without lifting the hands off the steering wheel.
The display panel is located at the top of the dashboard for easy access, and the air vents have been repositioned accordingly. The controls for the air-conditioning now come with a digital display as well. Between the front seats, the centre console has been redesigned to provide an armrest and improved storage space.
Cleaner, healthier cabin air
Since last year, following the initiative by the Geely Group which Proton is part of, more attention has been given to ensuring that the air quality in the cabin is healthy. This led to the fitment of a N95 Cabin Filter which is standard in the cars. 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. 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.
Both cars come with a comprehensive list of features and equipment and among them are no less than 6 USB ports around the cabin. One is even thoughtfully located behind the rearview mirror for easier connection to power a dashcam, instead of having the cable dangle down to the dashboard.
Tops in safety
Proton models are top scorers in ASEAN NCAP tests and the Iriz and Persona have scored the maximum of 5 stars from the safety organization. Crash tests have shown that the reinforced body structure using Hot Press Formed steel provides very good protection in collisions, while active safety systems such as Electronic Stability Control and Traction Control System help the driver retain control of the car in slippery conditions. Airbags are, of course, standard as they are required by law as are seatbelts for every occupant.
“The Proton Iriz and Persona have won many fans since their introduction, so we took a measured approach to updating them. The styling changes and addition of a new Active variant for the Proton Iriz will help boost their visual appeal while the changes we have made to the interior and infotainment system ensures they deliver better comfort and connectivity while retaining Proton’s trademark driving experience,” said Roslan Abdullah, CEO of Proton Edar.
A Launch Package (with applicable terms and conditions) is offered with both new models. This consists of a Warranty Package (5 years or maximum of 150,000 kms); Service Package (free labour service for 3 times); and a Data Package for 5 years with 1GB each month (new Iriz Active and Persona Premium only).
Proton began exporting cars to the UK in 1988 and at its first display at the British Motor Show in Birmingham that year, the young Malaysian brand won three awards for its Proton Saga. 33 years later, that same model can still win awards in the UK as the winner of the 2021 Hagerty Concours de l’Ordinaire (Festival of the Unexceptional) held recently.
Only remaining one of 201 special units
A 1989 Proton Saga 1.5 was picked by 6 judges as the winner of the seventh edition of the event for car models from the 1960s, 1970s, 1980s and 1990s. The Saga was one of 201 units of a special edition known as ‘Black Knight’ which was imported and distributed by Proton UK. It is the only one of that special series remaining. Between 1988 and 2001, Proton exported 124,980 cars to the UK which was its largest overseas market.
When the car was put away in a garage in 1993, it had only 3,600 miles (4,186 kms) on the odometer. It appeared in public again in 2017 and the current owner, Jon Coupland, added it to his Proton collection which now numbers three cars. The Saga has since clocked another 9,400 miles (15,134 kms).
Malaysians will be very familiar with this dashboard but the version exported to the UK market had a different design around the instrument panel which was adapted from the Mitsubishi Lancer.
At the 1988 British Motor Show, Proton won its first three international awards for the Proton Saga which made its introduction in the market that year.
Other notable winners this year
The runner-up prize went to Danny Wilson’s Peugeot 106 which was bought for just £500 via Facebook Marketplace. Special mentions went to James Green for his 1989 Nissan Bluebird, Charles Whilems and his 1986 Volkswagen Polo C Formel E, Chris Howells and his 1971 Triumph Toledo and Simon Hucknall for his 1977 Fiat 128. All of these cars impressed the individual judges and warranted their place in the 2021 Unexceptional Hall of Fame.
Speaking at the event, James Mills, Hagerty’s UK Editor, said: “What stood out for me this year was the number of fantastic cars fielded by younger entrants. It’s great to see the next generation of enthusiasts showing a real passion for everyday, ordinary, and unexceptional classics and demonstrates the growing love for this accessible scene. Our Festival started out as a small, cult event but today we saw thousands of visitors make the trip to admire the unsung heroes of the classic car world.”
Besides organising events ‘to keep driving alive for car-lovers and drive positive change in the world’, Hagerty is the world’s largest provider of specialist insurance for enthusiast vehicles and supports keeping car culture alive through youth programs, the Historic Vehicle Association (HVA), the RPM Foundation and more.
While the market remains in a depressed mood, Proton has introduced a new variant of its popular X70 SUV to cheer things up a bit. The new variant is the X70 Special Edition (SE) and only 2,000 units will be available from the plant in Tanjung Malim, Perak.
It is priced from RM123,800 (without insurance) and until the end of the year, sales tax is also exempted in full. At this time, as visits to showrooms are not allowed by the government, bookings have to be done online and this can be done with as little as RM99. Customers gets a 5-year warranty with unlimited mileage, 5 free labour services and a 5-year data package (T&C applicable).
The exclusiveness starts with the two-tone exterior colour scheme, with a choice of either Ocean Blue (a new addition to the colour palette) or Ruby Red. The roof, rear spoiler and door mirror covers are finished in black, while the 19-inch lightweight sports rims have a new design.
Mechanically, the X70 SE has similar specifications to the 2WD variant with the 1.8-litre TGDi petrol engine and 7-speed dual clutch transmission as the powertrain. The engine produces ps/300 Nm, which can take the SUV up to almost 200 km/h while using fuel at a rate of up to 13.2 kms/litre, it is claimed.
Inside, there’s black Nappa leather for the upholstery and for extra comfort, the front seats have internal ventilation. In these times when we are all concerned about air quality and cleanliness, the standard fitment of the Proton Intelligent Air Purification System (P-IAPS) will certainly be appreciated. This system combines the benefits of an N95 cabin filter and air purifier system, offering protection against airborne pollutants and contaminants to improve cabin air quality.
The X70 has the maximum 5-star rating from ASEAN NCAP so the occupants will be well protected in the event of an accident, with the comprehensive list of safety features including 6 SRS airbags around the cabin. Advanced Driver Assistance System help the driver avoid an accident while a Tyre Pressure Monitoring System can alert him or her of potential tyre deflation.
“By adding the Proton X70 Special Edition to our model range, Proton has expanded the upper tier of our target market. While it is a limited production model, we feel strongly that it will appeal to buyers accustomed to vehicles with luxury features who are looking for a new SUV at a great price,” said Roslan Abdullah, CEO of Proton Edar.
The current ‘full lockdown’ imposed by the stricter Movement Control Order is expected to affect the retail operations of many businesses. In the auto sector, showrooms must remain closed although aftersales services at service centres are allowed to operate. This will certainly have an effect on the Total Industry Volume (TIV) again, as it did a year ago when sales plummeted to nearly zero.
Best export performance since 2013
Proton cannot escape such effects but it is counting on export sales to help offset the downturn. Its International Sales Division has been recording increased numbers, with May 2021 being the best export sales month since March 2013. A total of 669 vehicles was sent overseas and up to the end of May, the export volume is 174% of the target set and only 6% behind what was achieved for the whole of 2020.
Proton’s growth in export sales is due to growing demand in several key markets, some new and some having sold Protons for decades. For example, Pakistan is a new market for the company and in the first 5 months of 2021, it was by far the best performer.
New Proton models draw crowds at a showroom in Pakistan.
Brunei, which started selling Proton vehicles as far back as 1987, was the third biggest export market by volume this year and in May, importers PAD Motors had the best sales month in the company’s history. In Egypt too, Alpha Ezz El-Arab, the importer and distributor for Proton cars, ordered and received 350 units this year, making it Proton’s second largest export market.
More exports in 2021
“At the beginning of the year, our plan for 2021 was to aggressively grow Proton’s export sales volume. Despite international restrictions and the rising cost of shipping caused by the coronavirus pandemic, we were confident of being able to meet our goals due to the sales plans of our importers and the appeal of our products. After 5 months, however, we are close to doubling the volume target set, which hopefully is a sign for more success in 2021,” said Steven Xu, Director of International Sales.
Although the present situation has slowed down new orders in the domestic market, demand has been high, and Proton’s factory is ready to meet this demand. For export markets, its longer term goals will be met by having some models assembled in certain countries. It has begun local assembly for the Saga in Kenya, and the next market to assemble cars locally will be Pakistan.
X70 SUV will be assembled in Pakistan as well.
“If everything goes to plan our partner in Pakistan, Al-Haj Automotive will begin assembly operations with the Proton Saga by the end of July or early August at its new plant in Karachi. The Proton X70 will be added to their production line later, and we have high hopes this development will spur sales growth in the South Asian region,” said Mr. Xu.
ASEAN sales vital for future growth
While growing sales in export markets is a reassuring sign of wider acceptance of the Proton brand and its products, the key to achieving the company’s long-term goals remains sales growth in ASEAN. The region is hotly contested with many global brands having invested in production facilities that supply local and export markets as well as competition from local manufacturers.
Proton aims to be third bestselling brand in ASEAN and has plans to return to Indonesia and Thailand.
Currently, Proton’s presence in ASEAN is limited to Brunei but the company has plans to return to the two biggest markets in the region – Thailand and Indonesia, in the very near future. “For Proton to be the third best-selling brand in ASEAN, we need to have a major presence in Thailand and Indonesia. As the biggest automotive markets in the region, they offer enormous volume potential, but the level of competition is also very high. For both countries, we have been busy recruiting partners to build a network that ensures a viable business model and in the short term, our target is to return to Thailand in 2022,” Mr. Xu added.
