With the launch of the Proton X70 at the end of 2018, not only did Proton have a totally new model for its range but it was also the start of a turnaround and ascent for the carmaker which continues to this day.
With the launch of the Proton X70 at the end of 2018, not only did Proton have a totally new model for its range but it was also the start of a turnaround and ascent for the carmaker which continues to this day.
Just seven months after commencing operations, the Proton engine plant in Tanjung Malim, Perak, produced its 10,000th 1.5-litre TGDI engine. The engine is used in X50 and X70 SUV models, further increasing their localisation which has always been an important mission of Proton as a Malaysian carmaker.
The engine assembly plant is part of the company’s commitment to invest RM1.8 billion to upgrade its facilities in Tanjung Malim (also referred to as Proton City) and the culmination of a journey that began in 2019 that was taken under challenging conditions. The operational expansion plan is in line with the first strategic thrust of the DRB-HICOM Automotive High Technology Valley (AHTV) programme that aims to maximise manufacturing activities in the region.
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Aftersales support is an important part of customer satisfaction and that means ensuring that required parts for maintenance or repair are readily available at service centres. With the growing number of owners in Sarawak, Proton has set up a new Regional Parts Centre (RPC) in the state capital of Kuching to ensure that the service centres can get parts quickly.
The new 28,000 sq. ft RPC has over 3 times the storage capacity of the facility in use before. It will distribute parts not only to outlets in Sarawak but also Sabah, which also has a large Proton vehicle population.
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Two months remain for this year and Proton’s total sales volume for 2022 has passed the full year’s sales volume of 2021. Announcing its October numbers today, the Malaysian carmaker said after 10 months of sales, its cumulative volume has reached 115,362 units. In the same period in 2021, it was only 114,708 units, or a difference of 33.6%.
The 10-month sales volume, which was contributed by the addition of 13,013 units (including exported vehicles) in October, was also noteworthy as it was the company’s highest volume since 2014.
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Purchasers of Proton Certified Pre-Owned (PCPO) vehicles will have more peace of mind with an extended warranty of 12 months when they buy the vehicles from authorized Proton used car outlets nationwide. The PCPO Extended Warranty Program (PCPO-EW) is now underwritten by Allianz General Insurance.
Under the program, parts of the engine and transmission that are found to be defective under normal use for the first 25,000 kms or 12 months after the purchase is made will be repaired or replaced by the warranty provider.
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Since the Zhejiang Geely Holding Group (Geely) acquired a 49.9% share in Proton in 2017, the Malaysian carmaker has been steadily regaining its strength in the domestic market. With new models like the X70 and X50, sales have kept rising although the COVID-19 pandemic slowed the trend last year.
Once the dominant brand in the market, Proton has been at No.2 for over 15 years and has been determined to regain its top position. With a strong sales month and more vehicles being available for delivery in September, the volume of 14,872 units (domestic + export) took the cumulative total volume for three quarters of 2022 to 102,353 units.
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One of the missions of Proton, which initiated the first National Car project, was to advance the automotive industry at all levels. Prior to the 1980s, the auto business was largely in the hands of a small number of players – many foreign-owned – and the aim was to help Malaysian businessmen get into the business in a bigger way.
Thus when Proton started, it saw the establishment of a network of dealers, small and large, starting up all over the country. For some, it was the first entry into the car business and they received the necessary support to grow their business. Over time, many of these dealers have worked hard to grow and with guidance and encouragement from Proton, they have become bigger.
Today, the small 1S dealerships which rely only on sales of new vehicles are no longer viable and Proton has persuaded dealerships to upgrade to 3S or 4S facilities where they offer sales, service, spare parts as well as body repairs and painting. In other words, they offer their customers the full range of services that will be required throughout vehicle ownership.
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Following the signing of the agreement to appoint the Combined Motor Holdings (CMH) Group as the distributor for Proton vehicles in South Africa in April this year, the Malaysian brand has returned to the continent’s largest passenger vehicle market. Besides Proton, CMH also represents brands such as Ford, Chery, Honda, Toyota, Suzuki, Mahindra, Peugeot and Citroen.
CMH recently held an official relaunch of the brand which included introducing the X70 and X50 SUVs. Manufactured at Proton’s Tg, Malim plant in Perak, the first batch of vehicles was shipped by sea to the port of Durban. Later in the year or in early 2023, CMH will also introduce the Saga.
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Following the signing of its General Distributorship Agreement (GDA) with smart last month, Proton has established a new subsidiary company to handle sales and distributorship for the smart vehicles which are available only with battery electric powertrains.
The new company, known as Proton New Energy Technology Sdn. Bhd. (PRO-NET), will also be responsible for Proton’s own future new energy vehicle (NEV) offerings. ‘NEV’ is a term which originated in China around 2010 and refers to vehicles which are electrified (including plug-in hybrids). The category was created to facilitate the provision of incentives to boost development and sales of electrified vehicles.
Although it had a slow start to 2022, Proton’s production has now risen substantially and in August, deliveries totalled 15,880 units (including export sales). It was the best sales month for the Malaysian carmaker since July 2013, 109 months ago.
Cumulatively, for the first 8 months of the year, sales of Proton vehicles reached 87,481 units, a 39.7% over the 62,637 achieved between January and August 2021. By Proton’s estimate (based on the expected Total Industry Volume of 66,900 units), that would give it a market share of 19.5%, with the August numbers alone taking the share to an estimated 23.7%.
The company remains focused on ending 2022 with a fourth consecutive year of volume growth.
Sales leadership
Despite the recent launch of new direct rivals from other brands, Proton has maintained its position at the top of the SUV segment. The X50 reached a third consecutive month where deliveries crossed the 4,000-unit level with 4,329 units delivered in August. It’s the first time an SUV has achieved such a feat in Malaysia and comes on the back of its industry record with 4,763 units in July.
The larger X70 contributed 1,555 units in August, bringing Proton’s total SUV sales for the month to 5,884 units. The cumulative volume for 8 months is now at 37,489 units.
On the passenger car side, the Saga also benefited from improved component supply as 6,156 units were delivered last month. Demand for the latest Saga remains high and total deliveries have exceeded 14,000 units since its launch in May this year.
The biggest beneficiaries of the increase in production volume were the Persona and Iriz. 2,612 units of the Persona were delivered nationwide, the highest number since February 2020. For the Iriz, the 962 units delivered were at a sales level not since April 2021.
Stabilised production
“With four months to go in 2022, Proton’s production operations have stabilised. Critically, our component supply is now more consistent and better managed to ensure we can produce as many cars as possible. With that in mind, we have undertaken an initiative to increase the number of delivery trucks by over 100% by the end of the year. This makes it easier to ensure our dealers receive their stock as quickly as possible and, in turn, this benefits our customers who have been patiently waiting for their vehicles,” said Roslan Abdullah, Deputy CEO of Proton.
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