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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 CKD Saga exports to Kenya
The Kenyan High Commissioner for Malaysia, Francis N. Muhoro (second from left), was present to observe the despatch of the first shipment of CKD Saga kits to Kenya.

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.

Proton exports
After a short period of inactivity in exporting cars, Proton resumed in the second half of 2018 with a batch of cars to the Middle East.

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

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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 range 2020

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.

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“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

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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.

Proton Saga

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.

Proton X70

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.

Proton Persona

Proton Exora

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

COVID-19

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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.

PROTON Certified Pre-Owned (PCPO)

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.

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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.

PROTON outlet

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

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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.

Proton Saga 35th Anniversary Edition

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.

Proton Saga 35th Anniversary Edition

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.

Proton Saga 35th Anniversary Edition

Proton Saga 35th Anniversary Edition

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.

Proton Saga 25th Anniversary Edition

“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.

N95 Cabin 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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Although I’ve reported on many cars having anniversaries during the 43 years I’ve been a motoring journalist, the 35th anniversary of the Proton Saga today is one that is special. As a Malaysian, the creation of the first National Car was a significant development in the industry that I have been covering. It took the auto industry to the next level and served as a catalyst towards industrialisation.

In the early 1980s, before Proton started, there were over 20 different brands in the market which had a Total Industry Volume of 50,000 to 60,000 units a year. It was therefore a fragmented market with each brand having small volumes, which didn’t make for efficiency nor economies of scale. A big manufacturer with larger volumes would have economies of scale which would keep production costs low – as Henry Ford had shown.

The bigger volumes would also make it viable for other upstream businesses to start, like parts suppliers. In fact, at that point in time, the auto industry was the largest type of integrated industry in the world with extensive upstream and downstream activities. Most people think only of cars being made but there are thousands of related industries – tyres, oil, electronics, petrol stations, workshops, etc. The auto industry was a major contributor to the economies of America, Germany and Japan because of this and it could also do the same for Malaysia’s economy.

Proton factory

And so a National Car project was started and while I understood the reasons for it, in the business that I was in, there was also some worry. Would the government close off the market and allow only Protons to be sold? If that happened, what new cars could our magazines write about? One joke was that perhaps we could test different versions of the Saga each month – one month, we might test a red Saga and see if it went faster and the following month, we would do a test with different wheels!

But as it turned out, the government didn’t close the market to other brands although it gave Proton special privileges like tax-exemption on parts which helped lower its production cost and gave it a significant price different from other models. This was important because the Saga was ‘a new kid in town’ and it would have been tough against the established models, the patriotism of Malaysians notwithstanding.

1985 Proton Saga
One of the first two official pictures of the Saga released in March 1985.

My coverage of Proton and the Saga began in 1983, two years before the car was launched. There were periodic briefings at the site where the factory was being built and I remember seeing big holes in the ground where the giant stamping machinery would be placed. The location was what was was then reharded as an ‘ulu area’ as it was in a newly cleared estate area that was to become an industrial park.

Proton factory
The factory under construction with the big holes over which the big machines to stamp body panels would be installed.

During the briefings, one of the questions I asked was about model changes. I wondered how long the model would be produced and whether there would be succeeding generations, like what other manufacturers did.  Or would it be produced a long time like the Hindustan Ambassador which was still produced in its original form in India after having been launched in the 1960s. Or worse, like the VW Beetle which was unchanged from after World War II till 2003!

The General Manager who answered gave this answer: “Of course we will develop new models from time to time – you know, like Porsche – and also add more models. Just give us time.” Porsche…hmmm… okay….

Proton factory
The Proton factory in 1985. It was the first car factory in Malaysia with its own test-track and R&D facilities. A bridge was built over the highway so completed cars could be easily sent over to the EON stockyard before being despatched to showrooms.

The project was Top Secret and when the first prototype was flown to Subang airport for Tun Mahathir to view, the hangar was surrounded by commandos. Back then, spyshots were unheard of and so the design of the Saga remained very much unknown till March 1985. That was when the first two official pictures were released and they were only of the exterior.

It didn’t have the ‘minangkabau roof’ that cartoonist Lat suggested, of course, and the design was familiar as it was adapted from a Mitsubishi model. Being new, adapting a model that was fully engineered was the fastest way for Proton to get going and I saw nothing wrong with it though some would say it was just a ‘badge engineered’ job. The industry was getting more competitive and Proton did not have the luxury of time to learn and develop in-house, as Toyota did in the 1930s. There was no time for trial-and-error and Proton had to get it right first time to convince at least Malaysians that it could make good cars.

1985 Proton Saga specs
Specifications in a test-drive report in WHEELS MALAYSIA.

Proton Saga 1985

An opportunity to drive the car before launch
Between March and July when the car was launched, there was increasing excitement and I looked forward to the launch. Much to my surprise, I got a call from EON (which was responsible for dealing with the media as it had a domestic marketing role) inviting me to their office which was opposite the factory. I was told that I would be provided with a car to test – and that was a few weeks before the launch! What a privilege as I would be among the first people not involved in the project to drive the car.

1985 Proton Saga

There were about a dozen of us motoring media (no bloggers then) from the magazines and newspapers and we had a briefing before we were handed the keys and off we went. Most of us chose the road to Puchong which was not the highway it is today. It was a winding road through estates and on one corner, one of the cars skidded and almost went off the road!

The problem we found was that the cars had too much air in the tyres, so it was not a design fault. What I suspected was that the excessively high pressures were because the car were rushed out of the factory for us and no one had thought of lowering the pressures to what was recommended. Often, tyres are pumped up harder because the cars may sit in the yard a while so it’s better to keep them hard so they do not deform.

Proton Saga 1985

The other thought was that someone felt that since we were going to test the cars, they needed higher pressures. This was what was done for cars that were racing on the track, so that was a possibility. Anyway, once we got the pressures corrected, the car’s handling was fine.

Super cold air-conditioning system!
Generally, the Saga was like the Japanese cars of that period – it was, after all, an adaptation of a  Mitsubishi Lancer. One thing that I remember being commented on was the air-conditioning system. The integrated type was slowly being introduced and the Saga had it but what impressed was its coldness! Clearly, the need for good cooling was a priority and Proton made sure it was suitably ‘Malaysianized’.

1985 Proton Saga
The air-conditioning system was truly ‘Malaysianized’ as its cooling was very good!

The first Saga came with steel bumpers at a time when the industry was transitioning to plastic bumpers (or a material known as polypropylene) to reduce weight. I didn’t have a critical view of steel bumpers though they were a bit heavier because I felt that they were easier and cheaper to repair and paint when damaged (just knock back and repaint). Proton gave that as one reason although it was also believed that the technology for plastic bumpers was expensive at that time and Proton couldn’t afford it. Those who had cars with plastic bumpers would also discover that if there was damage, replacement cost was very high.

1985 Proton Saga

How Malaysians ‘tested’ the Saga
The cars we drove were not camouflaged as, by then, the whole nation knew what the Saga looked like. In fact, EON even put stickers on the car which identified us and our publications. So wherever I went, people looked and pointed and stared at the car. And when I parked, a crowd would gather to get a closer look. As I thought of myself as an ‘ambassador’ for Proton, I did my best to answer questions and opened the bonnet many times to let people see the engine and let them get inside the cabin.

1985 Proton Saga

There was a lot of ‘Malaysian testing’ which involved the doors. They were opened and slammed shut so many times that I worried they would drop off! But the car was well engineered and survived the ‘punishment’, along with the tyres which were also kicked for reasons I don’t understand. There were probably tiny dents around the bodywork as people knocked on the panels, perhaps to check if the Saga was also a fragile ‘milo tin’ car, as the early Japanese cars were perceived.

On some occasions, I was followed as people wanted to look at the Saga and one night, someone even followed me all the way to my home! Normally, I would have been very concerned and driven to a police station but I realised that they were curious about the car. When I got down, a couple approached me and asked if they could take a look, so I let them.

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Biggest launch program for a new model
In the months that followed the launch of the Saga, EON embarked on a series of events that would be the biggest and most extensive in the history of the Malaysian auto industry. The first of its ‘Sagathon’ events saw more than 88 Sagas being driven from Kuantan to the top of Genting Highlands. The cars were driven by the owners themselves who would test the car’s capabilities on what had become a ‘public test course’ for motorists because of its steep climb.

The event was intended to counter rumours that the Saga was underpowered (one rival company even created a scene suggesting the Saga would struggle uphill) and would overheat when it encountered steep slopes. But all the Sagas got to the top – with a full load of passengers as well – without any strain and more importantly, no overheating.

Proton Saga 1985

Later on, when the Saga 1.5I with an automatic transmission was launched, the media was also given the opportunity to test its capability on the Genting road. On this occasion, the engine did overheat but it was not due to it not having enough power. There had been a mistake in the way the wiring was done for the electric radiator fan and when I switched off the air-conditioner (since the outside air was cool), the fan was disabled as well. So when the engine had to work harder and naturally got hotter, the fan didn’t come on as it should have when the temperature goes over a certain level. I didn’t consider it a flaw and it was rectified immediately by Proton.

EON went all out to get Malaysians to personally experience their National Car so as to dispel any perceptions of poor quality or inadequate performance. It had a SagaUji program which was run nationwide and cars were brought to residential areas to offer test-drives.

Proton

Interest in the car was so great that EON kept its showrooms open till midnight, starting with its biggest one along Jalan Ampang in Kuala Lumpur. As more and more cars were sold within a short time, the service centres also began extending their operating hours – which was something new then – and owners were able to send their cars for servicing after normal office hours.

The National Car project was not just about making cars but also boosting the entire car industry, which included retail activities as well. To this end, besides having its own network of outlets, EON also appointed 41 dealers around the country.

Proton Saga taxi
Before long, the Saga became a popular choice for taxi operators (Iswara version pictured).

Saga taxis
The first Saga taxis appeared within about 6 months during the Sagathon Wilayah Persekutuan held in conjunction with Kuala Lumpur City Day. There were 112 of them and they gave free rides to city folk. It was not surprising that the Saga quickly became the choice of taxi operators as its reliability was proven in many ways and it was less costly to acquire. Had it not been for the economic slowdown at that time and a freeze on taxi permits, sales of the Saga to the taxi segment would have been much higher.

Giving more attention to customers was becoming important as companies wanted to enhance the ownership experience of car-buyers. This led EON to start Talian Saga, a ‘hotline’ service specially to answer enquiries about the Saga and provide assistance to owners, as well as obtain feedback on the product and services. EON’s General Manager, the late Datuk Gurcharan Singh, got personally involved in Talian Saga and reviewed every enquiry before passing it on to the relevant department for action or response within 24 to 48 hours.

Also new in the industry at that time was a loyalty card program. Called the EON card, it gave Saga owners exclusive benefits such as discounts on parts and services as well as special offers on other items including insurance. Cardholders received Sinaran Saga, EON’s newsletter, regularly and later on, a magazine as well.

Proton
One of the many activities EON organised to give maximum exposure to the new Saga.

Every opportunity to showcase the Saga was exploited, and cars were provided for many international events held in Malaysia. These included the World Journalist Convention, World Endurance Championship (yes, a round was held at the Batu Tiga circuit), Merdeka Tournament and Malaysian Open Athletics Championship.

The Sabah-Sarawak Sagathon
Looking back, I would say the most significant event related to the introduction of the Saga was the Sabah-Sarawak Sagathon. For some reason which I can’t remember, I did not take part in it but many of my media friends did and they came home very impressed by how the Saga performed. 12 standard cars were driven 1,111 kms over rough roads and tracks, a true endurance test.

PROTON SAGATHON SABAH-SARAWAK

Even the air force supported the event by providing a C-130 Hercules to transport the participants and the Saga of the Raja Muda of Selangor from Subang to Kota Kinabalu, the starting point. And to get from Sabah over to Sarawak, the air force again provided transport to fly over Brunei (although the cars went by ferry).

Strong start in the market
EON did just about everything to give the Saga a strong start in the market. In the first year, sales only started during the second half of the year and around 7,500 cars were delivered.  The Total Industry Volume that year was about 68,000 units and Proton already captured an 11% share. The next year, its sales rose to 24,100 units and it accounted for 47% of the market. 1987 saw Proton –  with just the Saga – selling more cars than the rest of the other brands combined and taking a share of 65%.

Eager to get onto the global arena, Proton began exporting the Saga just a year after its launch, with Bangladesh being the first country to get the Saga. In time, Malaysian cars would be sold in over 50 countries with Singapore, the UK, Germany and Australia being the biggest markets.

Last original Proton Saga 2008
One of the last units of the original Saga, an Aeroback variant, leaving the factory in 2008 next to its successor.

The original Saga was produced for 23 years – perhaps much longer than intended. Though it gradually became somewhat outdated, it was well established and remained affordable so sales didn’t slow down till the 2000s. It fulfilled its original mission of providing affordable personal transport and by continuing to buy the Saga, Malaysians also helped the auto industry to grow because the supporting industries also gained increasing business.

Proton Saga No. 1
With its special place in the country’s automotive history, Proton is likely to keep the Saga name for a long time to come. Happy Birthday, Saga!

Click here for other news and articles about Proton.

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After suffering loss of production and sales in March, April and May this year due to the Movement Control Order suspending most commercial activities, a rebound has been evident in new vehicle  sales. With the sales tax-exemption incentives provided by the government, which will last till the end of the year, June sales are expected to be strong when the Malaysian Automotive Association releases the full data.

Meanwhile, Proton reports that its total number of sales was 9,623 units for June. This is the second highest volume for the brand in 2020. The number also represents a 69.5% growth over May 2020 and a 26.3% increase over the same month in 2019 when the world wasn’t affected by a pandemic.

Proton Sales H1 2019 2020
Data sources: Proton and Malaysian Automotive Association

Saga sells the most
The models contributing to the surge in sales were the Saga, X70 and Persona. The Saga, which  celebrates its 35th anniversary this month, had its best sales month in nearly 6 years with 4,447 units sold.

1,909 units of the X70 were delivered to new owners around the country while the Persona retained its position as the best-seller in the B-segment sedan category for a second consecutive month.

The cumulative volume for Proton after the first 6 months of 2020 is just slightly over 37,000 units and the company estimates its market share to be 21.2%, a 6.5% increase against the same period last year.

Proton Saga
The Saga celebrates its 35th birthday this month.

Busy second half of 2020 expected
“Proton’s sales in the first full month of business since February have been encouraging. While we remain cautiously optimistic for the second half of 2020, the demand for Malaysian cars in general and Proton vehicles in particular points towards increased consumer confidence in our products. This interest has also been buoyed by the recently announced sales tax holiday which, in our opinion, has stimulated demand”, said Roslan Abdullah, CEO of Proton Edar.

Encik Roslan said the second half of the year will be a busy one. ”Kicking things off will be our 35th anniversary celebration for the Proton Saga. We hope to use the occasion as a springboard for other activities this year as we continue our efforts to redefine Proton’s customer experience via a mix of 3S/4S outlets and innovative new products,” he added.

Revised Proton prices with additional ‘Tax Holiday’ Promotion

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2020 Proton Prices
Note: Prices shown are for private registration in Peninsular Malaysia with 10% Sales Tax excluded and special promotional rebates. Insurance premiums not included.
Proton models
Besides the reduction from exemption of 10% Sales Tax, Proton is reducing prices further with a ‘Tax Holiday’ promotion which offers rebates from RM400 to RM7,000, depending on the model and variant.

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Roslan Abdullah has been appointed as the Vice-President of Sales and Marketing at Proton.  Concurrently, he is also appointed as the CEO of Proton Edar Sdn Bhd, a wholly-owned subsidiary of the carmaker which is involved in the distribution of Proton cars and providing sales and aftersales services to customers in Malaysia.

Having spent close to three decades in the automotive sector, Encik Roslan brings with him a wealth of experience and knowledge about Malaysia’s automotive landscape. His stint in the industry covered finance, operations and sales roles. Prior to his move to Proton, the Finance & Accountancy degree holder from the University of Brighton, United Kingdom, oversaw the operations of DRB-HICOM Defence Technologies Sdn Bhd (DEFTECH). He also spent many years as the President & Chief Operating Officer at Honda Malaysia.

BHPetrol RON95 Euro4M

His appointment will further strengthen Proton’s team to achieve its long-term goal and objectives, according to Dr. Dr Li Chunrong, CEO of Proton. “We are happy to welcome Roslan Abdullah to the PROTON family and we look forward to his positive contributions to Proton’s performance during this challenging period.

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COVID-19

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Like most businesses around Malaysia, Atiara Johan Sdn Bhd had to suspend all operations from March 18, 2020 in accordance to the government’s Movement Control Order (MCO). The Proton dealership in Puchong, Selangor, was faced with an unusual business challenge where business could not be conducted for many weeks.

“The biggest challenge will be the temporary closure of the showroom and service centre which affects the overall performance for this year. However, I strongly believe that with the excellent products and services provided by Proton, and the strong team we have, we will be able to recover soon,” says Judith Yam, Managing Director of Atiara Johan.

Atiara Johan Proton dealership
Judith Yam (front left) and her team at Atiara Johan Sdn Bhd.

“Although we were unable to operate during the MCO period, it gave me sufficient amount of time to revise and improvise the sales and marketing strategies. For our sales advisors, they have been utilising social media as one of the platforms to expand their prospects. As for our service team, they have been managing and rescheduling customers’ service appointments and keeping them up to date,” she said.

“We prioritise the well-being of our employees, therefore we stay connected with our employees by communicating frequently through video conferences and messaging apps to make sure everyone is doing well,” Judith revealed.

Atiara Johan Proton dealership
From messages left on its Facebook page, the Proton dealership obviously has a high standard of customer care.

Judith and her team conduct video conferences frequently to discuss business strategies and formulate marketing ideas. “We are prepared to get the business moving when the MCO is lifted later. The recovery on sales is still very much dependent on the condition of the market. Nevertheless, we will proceed with our revitalisation plan to expand our sales coverage and to attract potential customers by utilising online platforms,” she added.

Staying in touch with customers
Since the implementation of the MCO, Atiara Johan has been communicating with customers via online platforms and messaging apps, as well as keeping their Facebook page updated at all times. “Our customers are able to get the latest information from our Facebook page and we have been communicating with our customers for after sales service and updates on product information via messaging apps.

Atiara Johan Proton dealership
The 3S dealership has rearranged its furniture in accordance with the Health Ministry’s Standard Operating Procedures to ensure social distancing for customers.

Develop a recovery plan
The chain reaction caused by the pandemic is clearly painful for many individuals and businesses. The majority of the businesses are facing the challenge of temporary closure that has led to revenue loss. Thus, Judith advises all business owners to develop a recovery plan and standard operating procedure for future reference.

“It is important to be always prepared, so we need to have a contingency plan in case of unexpected events,” she advised.

Like all Malaysians, Judith and her team are grateful to all frontliners who sacrifice their personal safety to safeguard the country and community. She also hopes all Malaysians will cooperate and obey the MCO regulations until our country is clear from COVID-19.

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