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Proton

Proton has started off 2023 with a strong surge in sales, having its best start to a year since 2013. With 11,681 units (including export sales) delivered in January, the increase in sales compared to the same month a year ago was 162.3%. With the market size for January estimated to be 51,000 units, Proton’s share would be 22.9%, an improvement of more than 12% compared to January 2022.

The strong performance is due to greater supply of vehicles from the two factories in contrast to the reduced output that the carmaker experienced last year due to flood-related supply issues. At the end of 2021 and early 2022, there was very severe flooding in some areas of Selangor which affected the operations of some of Proton’s suppliers.

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In spite of the challenges of getting parts, especially microprocessors, to complete vehicles, the auto industry in Malaysia actually had a boom year and is expected to have a Total Industry Volume (TIV) of over 700,000 units. Even by November, the TIV had reached 642,306 units, exceeding the sales forecast of 630,000 units made by the Malaysian Automotive Association (MAA).

For Proton, it was also another great year – the fourth, in fact – as the brand saw overall sales of 141,432 units (including exports) in 2022. This was with the addition of another 14,750 units in December, the fourth best monthly performance for the year.

Compared to numbers reported in 2021, Proton’s total sales grew by 23.3% despite a tough start to the year. Production was disrupted at both factories due to a combination of flooding which affected parts vendors in Selangor and an acute shortage of microprocessors, which was a global problem. The situation limited output and deliveries for the first 4 months of the year.

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Metro Driving Academy, which provides driver education and professional driver training, has acquired a fleet of Proton Iriz cars for use at its facilities in Kampung Melayu Subang and Bandar Bukit Puchong. The fleet, totalling 50 units, was delivered recently to the company.

As the cars will be used for training, they have been modified for the purpose in accordance to the rules and regulations set by the Road Transport Department (JPJ). The modification work was carried out by ACE, a subsidiary of Proton Global Services specialising in custom builds and modifications.

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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.

Besides being the first model developed in collaboration with Geely, DRB-HICOM’s partner in Proton, the X70 was also first premium SUV model from Malaysian carmaker.
More than 10,000 bookings were received even before the X70 reached showrooms around the country.
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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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