The beginning of the Malaysian car industry can be considered to have started in the mid-1960s when the government introduced its first policy for the automotive industry. The policy set a strategic direction with the implementation of preferential tariffs for carmakers that assembled their vehicles locally, as well as used parts obtained in Malaysia. It was one of the moves to take the country’s economy from being agriculture-based to industry-based.
Response was good from the carmakers and by the end of the 1960s, a number of assembly plants were operating and producing a variety of models. However, the majority of these plants were in Peninsular Malaysia – clustered in the Klang Valley and in Johor. This was because vehicle demand in Peninsular Malaysia was growing rapidly.
The East Malaysian states, on the other hand, were still largely lacking a proper road network and potential sales were also not high back then. Commercial vehicles and 4×4 vehicles like the Toyota Land Cruiser and Hilux were more popular than cars.
So while the development of the sales and service network was more active in Peninsular Malaysia, it was slow in Sabah and Sarawak. This is not to say that the states were neglected by the car companies, but it was a matter of the number of vehicles sold and the number of supporting outlets needed.
Today, however, the East Malaysian market has grown substantially as the economies of the two states have advanced. This has been helped by the better roads and road network and rather than travel in bumpy light commercial vehicles, many East Malaysians now prefer passenger cars with more comfort.
Sabah gets Proton’s first flagship 4S centre
Perhaps in recognition of this progress, Proton chose the state of Sabah for its first flagship 4S centre in Malaysia. The brand new outlet is operated by Fook Loi Corporation (Sabah) Sdn Bhd and has a distinctive Corporate Identity that is associated with the new Proton which has come about following the partnership with Geely.
Setting up a dealership requires millions of ringgit in investment and as Proton has shown that the brand is on the ascendancy with rapidly growing sales, businessmen now see being a Proton dealership it as a viable investment.
“Deciding to become a Proton dealer was not difficult because we see the potential for Proton in Sabah. The current range of Proton models is highly competitive and technologically advanced with features that appeal to the new generation of car buyers,” said Thomas Chiu Kui Yin, Group Executive Director of Fook Loi.
Additional Body & Paint services
Seeing much potential in the aftersales business, Fook Loi chose to go all the way and be a 4S outlet. This means it offers customers an added Body & Paint service for the repainting and restoration of vehicles to Proton’s standards when they have been damaged.
Every aspect of the outlet adheres to Proton’s objective of giving customers a great experience and is spacious, comfortable as well as pleasing to the eye. It offers free wifi, a kids’ corner, ample parking space and a coffee area. Equally important, the outlet has well trained sales and service staff who can provide a high quality customer experience.
“These may seem like simple requirements, but they are critical ones. When customers walk into our showroom or service centre, they would like to be greeted by smiling faces and a beautifully lit area. This will then set the tone for more meaningful conversations and customers will feel welcomed and appreciated. Since outlets are our first point of contact, numerous steps have been taken to ensure that a wholesome experience starts here. These efforts have paid off. Our sales have been on an increasing trend and with our new products, we are confident that we are on track for the company’s return to profitability,” said Dr. Li Chunrong, CEO of Proton.
Team Proton R3 (R3), Proton’s racing and rallying division, has announced a lady racers search and mentorship programme for teams competing in the Malaysia Speed Festival (MSF) series. The programmes are in partnership with MSF, the largest grassroots motorsports event in the country. Both programmes aim to develop motorsports at grassroots level by leveraging on R3’s experience built up over many years of competition.
“At Proton, we value our competition heritage and acknowledge our cars remain a popular choice at all levels of racing and rallying. We invest to compete in local and international events because we believe motorsports is a fertile environment to develop the best engineers. The lady drivers search and mentor programmes are just the starting point and we hope our efforts will spur more involvement from other automotive companies to develop the local racing scene,” added Dr. Li Chunrong, CEO of Proton.
Giving back to Malaysia’s racing community
R3 is the only manufacturer-supported racing team in Malaysia and in over 15 years of experience, Proton’s performance arm has collected a string of accolades to its name. Their resume is highlighted by wins in the Asia Pacific Rally Championship (APRC) and class victories at the World Rally Championship (WRC) level.
Domestically, the team has two overall Merdeka Millennium Endurance (MME) wins to its name as well as four Sepang 1000km (S1K) victories, a record unmatched by any other automotive brand.
Sharing wealth of experience
With such a long list of accolades, R3 now aims to share its wealth of experience via the MSF-R3 Lady Racers Search and MSF-R3 Mentor Programme. This will allow Malaysian racing drivers and teams access to information, team management and car development techniques that will help to elevate their performance and lead them to success at national level events.
It is also an opportunity to discover talented lady racers and nurture their careers, giving them a good head start in a male dominated arena. Putting women behind the wheel and mentoring racing teams. While many Malaysian racing drivers have competed in regional and international events, almost all of them have been male-dominated. Proton and R3 would like to change the narrative and give lady drivers a chance to shine in motorsports.
Starting off with three
From an initial pool of participants, three will be offered an opportunity to develop as racing drivers and participate in the 2019 edition of the S1K race, driving a Team Proton R3-prepared car. Selections will be based on how contestants perform in a series of on and off-track activities and will include being judged on criteria such as discipline, teamwork and commitment aside from their skill behind the wheel.
As for the mentor programme, selected drivers and teams competing in the MSF SuperTurismo races using Proton vehicles will be supported by Team Proton R3 personnel for the remaining 3 events this year. Though each team will be independently managed, R3 will provide technical and set-up know-how before and during the race, with the specific aim to improve their performance and inculcate best industry practices.
“Our long history of competing means there is a wealth of knowledge at Team Proton R3’s disposal. At the same time, we want to get more involved at the grassroots level as we feel Proton and R3 should play a bigger role in the development of motorsports in Malaysia. These two separate programmes will allow us to be involved on two fronts simultaneously while also showcasing the ability of Proton cars to compete in races” said Gary Lee, Head of Team Proton R3.
Drivers and teams for MSF-R3 Racers Mentor Programme:
Mohd Hafiz Saad #248
Nik Shahrul Fadli Nik Mansor #141
Alban Raymond De Sauza #16
Muhammad Faishal Othman #180
Md. Shah Hashim #387
Contestants for the MSF-R3 Lady Drivers Search:
Ng Aik Sha
Samanda Lee
Nurul Husna Nasharuddin
Nursharina Nor Ramlle
Dayangku Faratiwan Adnil
Rozana Rahmat
Umi Nasirah Sulaiman
Zaidah Mohd Ishak
Nor Azirah Mohd Azhar
Every car company wants to sell as many vehicles as possible and each year, there is the expectation that there will be more deliveries than the year before. However, as some companies have discovered to their regret, the pursuit of more and more sales without equal attention to expanding the aftersales network – especially authorised service centres – can create problems for customers. Lack of advance planning to cope with an increased number of new vehicles requiring regular servicing will mean customers have to wait longer for an appointment.
Push to upgrade network for future
One of the first things which Proton did after it had Geely as a partner was to review its entire network and upgrade it. Though there were many dealers all over the country, not all were offering the full range of services for customers and in order to enhance the ownership experience, Proton aimed to get its network to be majority 3S/4S outlets. This meant that they would have sales, service and spare parts (3S) at one location, and those with additional space would also have extra services such as painting and body repair (4S).
The initiative was initially met with resistance as it required large investments. There were many small dealers who had just a showroom in a single shoplot and were satisfied just selling a few cars a month all the while. They didn’t understand that with additional investment to upgrade their dealership, they could grow their business further and derive extra income from aftersales services. Instead, their customers were being ‘stolen’ by dealerships which would look after their needs and probably sell them their next Proton. So these one-shoplot dealerships (referred to as ‘1S’ in the industry) could never grow as the only money they made was from the sale of the car. As those in the car business will tell you, there is much more money to be made in the aftersales side.
Proton’s CEO, Dr. Li Chunrong, pushed hard for the upgrades in spite of criticism by certain groups but he explained that it was necessary to prepare the network for growth and to ensure that customers would have a better ownership experience. There was no point in developing better models if the aftersales support was poor and people felt the brand image was not something they were proud of.
100 3S/4S outlets to date
With the opening of a new outlet in Seremban, Negeri Sembilan, recently, Proton now has 100 3S/4S outlets nationwide, which makes it the brand with the largest such network. The new 3S outlet at the Oakland Industrial Park was built with an investment of approximately RM4 million. Located near the Seremban 2 Township, it is surrounded by new malls and housing areas which already have many Proton owners and will have many more in future.
The new 3S outlet at the Oakland Industrial Park in Seremban, Negeri Sembilan.
“What we have achieved is the culmination of hard work, dedication and commitment by the entire Proton family, from our vendors, dealers and talents in the company. From the beginning, we held the belief that to progress, we need sufficient outlets, good products, great technology in our cars and talent to manage the expectations of the company,” said Dr. Li.
“The results speak for themselves. Our sales have soared and we have since reclaimed the second spot since April this year. Total sales for the month ending July stand at 52,269 units compared to 35,561 in the same period last year, which equates to 47% growth in overall year-on-year sales,” he added.
Each person has their special days – birthdays, anniversaries, etc – which they celebrate each year. But for all Malaysians, August 31 is celebrated by everyone to mark the day when the country became independent in 1957. Many companies have special activities or in the case of Proton, create something special for the occasion.
62 units for 62nd year
For this year’s 62nd Merdeka celebration, the Malaysian carmaker has created its first limited production SUV – the X70 Merdeka Edition. Only 62 units are available at RM126,100 each. Customers can choose from two exterior colour choices – Snow White or Flame Red.
The number of units available naturally coincides with the 62nd anniversary of Malaysia’s independence. Proton expects that all units will be taken up during August, especially since demand for the X70 continues to be high.
Similar spec level to Premium variant
Mechanically, the X70 Merdeka Edition is identical in specification to the Premium variant of the SUV. The exclusive items are the exterior styling package and some additional interior trim.
For the exterior, a signature paint finish called Quartz Black has been added to the roof and A-pillar. Door visors have also been added all-around together with a rear bumper scuff plate and, as a finishing touch, a customised Merdeka Edition emblem has been mounted on the tailgate.
Unique numbered emblem for each unit
Inside, there are exclusive floormats, a mat in the cargo area and a special numbered Merdeka Edition emblem to identify each unit uniquely. The Nappa leather seats and glass roof along with the Advanced Driver Assistance Systems (ADAS) found on the Premium variant are all present in the Merdeka Edition.
“The Proton X70 Merdeka Edition was born out of Proton’s desire to celebrate Malaysia’s Merdeka anniversary month. We are extremely thankful for the support Malaysian car buyers and the Malaysian government have shown to Proton, so this is the company’s way of creating a special version of the Proton X70 as a small gesture of thanks to all Malaysians,” said Dr. Li Chunrong, CEO of Proton.
The folks from Proton have finally unveiled the updated 2019 Proton Saga earlier today in true spectacular fashion at the Malaysia International Trade and Exhibition Centre (MITEC) Kuala Lumpur. Paired with the tagline, “Intelligent Proposition”, the updated Saga comes with a host of upgrades in terms of looks and equipment. (more…)
Pending official data from the Malaysian Automotive Association later in the month, Proton has announced that it has risen to No.2 position in overall sales in July 2019. The last time the carmaker was in a similar position was March 2016, while the last calendar year it finished in second was in 2015.
The ascent to the second overall position came with the delivery of 8,590 vehicles during the month, providing a positive start to the second half of the year. It is also the seventh consecutive month of growth and Proton is the only brand to have such momentum in 2019.
47% improvement in 12 months
The brand’s market share for the month is estimated at 16.5% with a Total Industry Volume (TIV) estimated at 51,960 units. Based on cumulative sales for the year, Proton’s overall market share should be around 15% on a volume of 52,269 units. This time last year, Proton’s cumulative sales had reached 35,561 units so it’s a 47% improvement.
12 months ago, automotive sales in Malaysia received a boost when a tax holiday was implemented from June to August. Proton, like all the other brands, posted its best numbers for 2018 during that 3-month period. In 2019, even without the benefit of the tax holiday, Proton’s sales have continued to show positive growth although not as spectacular as the year before.
“For the rest of 2019, we intend to consolidate our position to finish the year
ranked second for the first time in 4 years.”
Dr. Li Chunrong, Proton CEO
Ahead of schedule
“Proton’s return to second place overall in the Malaysian automotive market has happened ahead of schedule. The growth in demand for our products show we are on track to meet our long-term targets and for the rest of 2019, we intend to consolidate our position to finish the year ranked second for the first time in 4 years,” said Dr. Li Chunrong, CEO of Proton.
“With the launch of the updated 2019 Proton Saga set to take place shortly and our other product introductions in the pipeline, the company is quietly confident of even better results in the future,” he added.
On the performance of the various models, Dr. Li said the Persona is now the sales leader in a segment that is ruled by Japanese products. “The Proton Saga is still a popular choice amongst first-time car buyers looking for a safe, reliable and economical vehicle. Even the Proton Iriz has seen a surge in demand, with sales growing by over 50%, so the company is humbled by the trust Malaysian car buyers are putting in our brand,” he said.
Visit www.proton.com to know more about the models available and where to view, test or purchase them.
The Proton ‘Intelligence that Inspires Challenge’ concluded its final round last Monday (29 July 2019) where 12 teams competed at the Proton’s Centre of Excellence (COE). Politeknik Port Dickson emerged as the champion of the latest Proton marketing competition where they wowed the judges with their final presentation. (more…)
Recent news reports have mentioned that our Prime Minister, Tun Dr. Mahathir Mohamad, has been having discussions with Turkey on providing expertise for automobile production. This offer could tie in well with the plan of the country’s President Erdogan to produce its first domestic car within the next few years.
To most Malaysians, this may seem like the first time that Malaysia is connecting with Turkey with regard to auto industry business. However, there was already a connection over 20 years ago when Proton was exporting its cars there. From official information available up to May 2001, Proton exported almost 6,000 cars to that country. The cars were well received and owners even formed a Turkey Proton Club.
Proton continues to be represented by Ulu Motor which took on the distributorship in 2004. It sells models like the Exora, Preve, Saga FLX and Persona.
M Fadil Akgunduz in 1999
Plan for a Turkish car in late 1990s
But what’s more interesting is the plan for a Turkish car, as mentioned earlier. Back in 1999, a Turkish businessman by the name of M. Fadil Akgunduz, Chairman of Jet Otomobil Pazarlama (JetPa) Holdings, was already planning to produce a domestic Turkish model by 2002. I happened to meet Mr. Akgunduz at a European motorshow in 1999 and got to know about his ambitions.
One of the companies owned by Mr. Akgunduz was the first Proton distributor in Turkey, having started importing the Malaysian cars in 1997. He saw much potential for the Malaysian cars, especially as they came from a fellow Muslim nation, and was inspired to come out with a Turkish car in due course.
He believed that a Turkish domestic model could sell well in Europe as he could count on the 400 million Turks (at that time) living in European countries, especially in Germany, to give their support. These future customers could buy up to 250,000 cars and he expected that up to 70% of his factory’s production could be for exports.
Styling of IMZA 700 prototype was believed to have been done by ex-Volvo designers.
The IMZA 700
The Turkish car was called the IMZA 700 (the number referring to the 700th anniversary of the Ottoman Empire’s founding) and a prototype had been unveiled in October 1998. The prototype was developed by CMAK Ltd (a British company then owned by Malaysia’s EP Manufacturing Bhd.) and the Orbital Engine Corporation Ltd of Australia.
The orbital engine (which had inherent issues that prevented it from being commercialized) was only for the prototypes. Production models were to have 1.2-litre and 1.6-litre petrol and diesel engines.
US$2.7 billion project
The whole project, including the factory, was expected to cost as much as US$2.7 billion and this was back in the late 1990s. Mr. Akgunduz knew about Proton’s huge factory being built in Tg. Malim and wanted to do the same thing in Turkey. He envisioned a production capacity of up to a million units annually by 2012 (from two factories).
He said he had been in discussions with Proton to see if they would want to assemble some of their models at his new factory in Siirt and reciprocally, he would consider assembling the IMZA 700 at their new factory for sale in Malaysia and the neighbouring countries.
I had forgotten about the IMZA 700 and the ambitious plan of Mr. Akgunduz until the recent news about our PM offering automotive expertise to Turkey brought back memories of that meeting. So what happened to the Turkish car? From various reports in the early 2000s, there were investigations into the way funding was being obtained and German and Turkish government agencies took action against JetPa and its owner, which eventually killed the project.
With the automobile being over 100 years old, there are obviously lots of anniversaries celebrated every year and for Proton, July is a special month because it was in this month that the first Malaysian National Car was launched. Over the past 34 years, the anniversary has been celebrated in big and small ways although this year, it seems to have been somewhat low-key. Maybe next year will see something special.
My very first encounter with the Proton Saga was actually some weeks before the official launch. I had the honour of being among the first group of people outside Proton and those involved in the project to drive the car before it was in the showrooms. I think there were a dozen of us from the newspapers and auto magazines (no websites and bloggers in 1985) who were offered the exclusive opportunity.
One of the first two official pictures of the Saga released about 2 months before the launch.
No camouflage, no secrecy
Surprisingly, although the car’s appearance and details had been kept secret for a long time and only two official pictures had been released, by the time our event took place, there seemed to be no more secrecy. Nothing was camouflaged or taped up and we were under no orders to avoid being seen on the roads. In fact, the aim was for us to expose the car to the public as much as possible and report on the comments we picked up. The newspaper guys, with more resources, went further out of the Klang Valley to the rural areas to show off the car. A common question asked was how come we had the cars already when the public was told that they would only be available on September 1.
The event was handled by Edaran Otomobil Nasional (EON) which was set up to handle domestic distribution and marketing. It was separate from Proton, the company manufacturing the cars, and the man who was handpicked by Tun Dr. Mahathir to establish it and run it was the late Datuk Eric Chia (later Tan Sri). His UMW Corporation (in a joint-venture) with Toyota Motor Corporation had also acquired the Toyota franchise two years earlier, so he was deemed to have experience for the job of selling the National Car.
For those who want to know what the specifications of the first Saga were, here is a page from WHEELS MALAYSIA’s test report.
Datuk Eric Chia had an aggressive character and the first press conference we had with him was certainly ‘memorable’. Apart from a general briefing, we had a bit of time to ask some questions and one journalist asked him about the pricing structure and the optional items. Back then, when you bought a car, you generally paid one price and that was it. But with the Saga, the air-conditioner was optional and at that time, other companies were beginning to make it standard. EON probably felt that customers would still prefer to save money than enjoy cool comfort so they gave the option of leaving it out.
The ‘char kuey teow’ explanation
Anyway, the reply by Datuk Chia was what I would call the ‘char kuey teow’ answer because he used the popular fried kuey teow dish as an example. Sounding somewhat infuriated at having to explain what seemed (to him) like a simple thing, he said that when you order a plate of fried kuey teow, you get the basic preparation for one price. If you want an egg or more eggs, you pay more. So, if customers want the air-conditioner, they pay more.
In the early years. there was a bridge from the factory over the road to make it easier to send finished cars to the EON stockyard.
It wasn’t such an issue then but in later years and at least up till the end of the 1990s, this issue of extra-cost options and the ability of customers to reject them would be a controversial subject. The joke was that they were really ‘standard options’!
After the press conference, we went to the cars and each one had the name of the journalist on a giant sticker on either side. I cringed seeing that and my friend, Shariza Hussein, editor of Auto International, later removed it because he too didn’t like the idea. I was a bit more ‘junior’ to him so I didn’t dare do the same thing for fear of getting in the bad books of the EON people at such an early stage!
There was no fanfare for the start-off, just a simple wave of a flag, and we headed out of the gates. The EON office then was just across the road from the factory and many of us went right towards Puchong. Now back in 1985, the road was nothing like it is today. It was still a narrow country road winding between estates but it was a nice road for driving, so we instinctively took it, I guess.
The first incident with the Saga!
Somewhere near the spot where the toll plaza is today, one of the cars spun and we stopped to check. No damage, just a dramatic moment but that was rather odd as there was no oil or gravel. Then someone checked the tyre pressures and they were very high – about 300 kPa when they should have been around 200 or 210 kPa! No wonder the steering felt rather light even though there was no power assistance.
There were two theories why the pressures had not been right. One was that the cars had been rushed over and usually, when cars leave the factory line, they may have high pressures in the tyres if they are going to the stockyard. They may be there a while so if the tyre is kept harder, then it won’t ‘flatten’ at the bottom.
The other theory was that someone felt that since the cars were going to be tested ‘hard’ by journalists, it was better to have higher pressures. After all, that was what was done with the racing cars at Batu Tiga which would have their tyres pumped up to 280 kPa. It’s not dangerous if you are aware but we weren’t and besides, having non-standard pressures would give a wrong impression of the ride comfort too. So we adjusted the pressures to what was recommended and the car felt pretty good.
Unprecedented attention for the car
By that time, I was already 8 years into my career so I had driven many new models. But the amount of attention the Saga got was nothing I had ever seen before (and it didn’t help having my name on the door though I appreciated the little bit of publicity for my magazine, Wheels Malaysia).
Some people even followed me home, normally a worrying thing but I got used to it and to just letting them view the car. I remember one couple said they had asked to see a brochure at the EON showroom but they didn’t have any so they were reluctant to pay the deposit. Then after they saw my testcar, they fell in love with it and said they were going to head to the showroom to pay the deposit as they wanted to be among the first to own one.
The price was a common question and I could only repeat what was speculated in the papers. But it seemed that there was the expectation that as our National Car, it was going to be cheap and therefore good value for money. When the price was revealed, it was RM16,047.62 for the Saga 1.3S.
It was interesting to watch how people checked out the Saga. There was the typical opening and closing of doors, some slamming hard and giving a nod of approval when they heard a solid enough sound. Some even rocked the car and of course, there was a lot of pressing and touching here and there.
There were no phones with cameras then, let alone mobilephones, so you didn’t have almost everyone taking pictures. Today, I suppose there would be lots of selfies being taken in such a situation!
There were lots of questions… how powerful, what were the features, what colours were there, were alloy wheels available, how did it feel, was it stable, and so on. Some tried their luck and asked if they could drive it but I had to say no. As it was, I was concerned the public ‘testing’ might break something although the Saga stood up pretty well.
A patriotic cover for the first Malaysian National Car
The importance of the National Car project
To be frank, the Saga was a Malaysian National Car, our very first, but it had Japanese since it was adapted from a model sold by Mitsubishi Motors Corporation. There was a fair amount of ‘customisation’ by Malaysian designers and engineers to ‘Malaysianise’ it and it was also just the start when much had to be learnt. The Malaysian public didn’t care, of course, as there was pride that we were able to make our own car.
The Saga was the first product of the National Car project which was to help accelerate the country’s industrialization. It was well known that the auto industry was a good catalyst for such a purpose and it had worked for Germany, Japan and the USA. This industry alone generates millions of jobs upstream and downstream globally, and it also supports the development of ancillary industries. There were critics of the project who felt that our market was not large enough for such a project and they were right but after over 30 years, it is also clear that the National Car project at least helped the auto industry to develop further and be an important contributor to the economy.
It was a weekend to remember for Team Proton R3 as they dominated the third round of the 2019 Malaysia Championship Series (MCS). Not only did they celebrate a double victory but they also swept the podium clean with a 1-2-3 finish in Race 2. (more…)
