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Proton gears up for another challenging year with a 32% increase in sales volume targeted

Going into a new year and new decade, Proton is gearing up for a stronger push in 2020 to become No.1 in the Malaysian market and No.3 in ASEAN. Last year’s performance was impressive as the carmaker sold more than 100,000 units again (100,821 units, including exports), a volume not achieved since 2015. By its internal estimates, Proton believes it achieved the strongest sales growth among the top 5 brands in Malaysia in 2019, with overall market share likely to be 16.7%.

In the past, the achievements would have put everyone in a celebratory mood, lulled into complacence again and relaxing. The company is back in a good position so pressure on the accelerator pedal can be eased. But for Dr. Li Chunrong, the company’s CEO, what was achieved in 2019 is now history and backing off is the furthest thing from his mind. He’s not going to allow the company to fall into the trap where everyone starts to become complacent and suddenly, other brands zip past because they didn’t take their foot of the throttle.

For 2020, Dr. Li has given everyone in the Proton family a new set of challenges – sell 32% more vehicles and reach 132,000 units (he thinks a higher number is possible) with more attention on exports as well. The target is 4,000 units for this year but there are challenges in going into other markets where Japanese brands have dominance and volume to price their products competitively. So Dr. Li hopes the government will give Proton help in its export efforts, mainly to make its prices competitive enough which is difficult as the production cost is still high.

Two new products in 2020
The Proton range for 2020 will remain the same and there will be two product launches during the year – the locally-assembled X70 and the smaller X50 later in the year. Assembly of the X70 at the Tg. Malim plant in Perak started late last year and stocks are building up so it shouldn’t be long before Malaysian-made units arrive in showrooms. Rumours are that it will have enhancements which increase its appeal and value for money compared to the ones which have been imported in CBU (completely built-up) form from Geely’s factory in China.

Geely Binyue Proton X50 — *The Geely Binyue will be the basis for the new X50 which will be launched in Malaysia later this year.*

As for the X50, it is no secret that this will be adapted from a Geely model known as the Binyue, just as the X70 was adapted from the Geely Boyue. And like the Boyue, it’s not just a matter of changing the badge on the grille and getting Proton Design to add a Malaysian touch to the styling. To develop the X50 will require an engineering program that is almost like developing a new model, more so because there is no righthand drive version. The advantage of using the Binyue platform is that it has been fully engineered so time and money can be saved, an approach used by other carmakers which share platforms.

Dr. Li revealed that, unlike the X70, the X50 won’t be made in China and shipped to Malaysia initially. The factory in China is probably not very happy to have to do the ‘small’ volume of X70s when it needs all the capacity it has for producing Geely vehicles so the first X50 will come from the Tg. Malim plant. Perhaps Geely is confident that enough experience has been gained in the X70 project that the X50 can be born in Malaysia instead of China.

The future of the other legacy models remains unknown but with the Saga doing extremely well, Proton has even started a second shift to produce it. It is clear that quality was something which matters a lot to Malaysians and neglecting it in the past was one of the reasons for Proton’s sales decline. With Geely providing guidance and assistance, build quality has risen and the cars are now very much in demand, topping their segments as well.

More 3S outlets to be opened
One of the things which Dr. Li felt needed a major transformation was the retail network. He saw that the experience Proton customers were getting, whether in the showroom or service centre, was not good enough. So one of his early efforts focused on upgrading the outlets and insisting that the dealers must invest in 3S facilities that provide sales, service and spare parts (and more, if possible) in one location. He met with resistance initially, but he did not give up and slowly convinced the dealers that it was in their interest to provide facilities that made the experience of owning a Proton a very good one.

Today, while there are still 1S (showroom only) outlets which are old ones, the majority are 3S and 4S outlets. During 2020, the number will be raised to at least 150 and that is considered optimum for the projected volumes to be sold. Dr. Li understands that dealers must make good money and the sales per outlet must be reasonable. He won’t make the previous mistake when Proton acquired USPD and together with EON, doubled the size of its network, with the assumption that its sales volume would also be doubled. Instead, dealers suffered and not surprisingly, motivation was poor which impacted the brand.

As the Proton CEO said, 2019’s achievements are history and 2020 is a new challenge, so expect to read more news about Proton as it speeds upwards and forward to regain its dominance in the Malaysian market.

Proton’s annual sales crossed the 100,000 level in 2019, first time since 2015

Proton’s export offensive underway with updated models launched in Brunei

With domestic market sales on the upswing, Proton is now giving attention to exports, which will be crucial for its future. Its products have been well accepted in neighbouring countries and can be exported duty-free under the provision of the AFTA agreement.

Following the launch of the Proton X70 in July last year, Pad Motors Sdn Bhd, the distributor for Proton in Brunei has received its first shipment of the updated Iriz, Saga and Persona models. Brunei is the first market outside Malaysia to begin selling these models and the distributor will be introducing them more actively with a roadshow starting on January 28.

Focus on growing export volume
After a successful 2019 saw the total sales volume grow by 55.7% – which Proton expects will place it in second overall position – the Malaysian carmaker is now looking to improve its performance in 2020 in export volumes.

“The export market will play an increasingly important role in growing Proton’s annual sales. When we updated the Proton Iriz, Persona, Exora and Saga last year, we did so while taking in to account the needs of markets outside of Malaysia and today, three of those cars are now available in Brunei. It’s a good start to 2020 but as the year progresses, we will be looking to export our cars to more countries,” said Dr. Li Chunrong, Proton’s CEO.

Aiming for No.3 in ASEAN
Dr. Li added that Proton’s long-term intention is to be the best-selling brand in Malaysia and Number 3 in ASEAN by 2027. In order to meet the ASEAN target, export volumes will need to be boosted in coming years.

Aside from its updated models, Proton will also be looking to grow sales of the X70. With 2020 versions already leaving the production line at the Tanjung Malim (which has a new RM1.2 billion extension), the carmaker now has the option of expanding the footprint for its SUV which recently won the 18^th Malaysia Cars of the Year overall award.

Proton Tg Malim 2019 — *With an additional investment of RM1.2 billion for an extension at the Tg. Malim factory in Perak, Proton can now plan for bigger export volumes in coming years.*

“Exporting the Proton X70 will be critical for Proton’s future sales growth, especially in neighbouring ASEAN countries. It will spearhead the introduction of the next generation of Proton models currently being jointly developed with Geely and will lay the groundwork for the brand with customers in these markets,” added Dr Li Chunrong.

Visit www.proton.com.my to know more about the X70 and other models in the Proton range.

Introduction of new brand logo marks start of Proton’s next chapter

Proton’s annual sales crossed the 100,000 level in 2019, first time since 2015

Since 2015, the total annual sales of Proton vehicles have been below 100,000 units but 2019 saw it cross the 100,000 mark again to record a total sales volume of 100,821 units (including exports). The achievement was helped by a boost in December which were the highest for the whole of 2019 – 11,117 units which was 112% over the corresponding month in 2018 and also the first time the carmaker has sold more than 11,000 cars in a month since July 2014.

While the December sales number is equivalent to a 20.5% share of the anticipated Total Industry Volume (TIV) for the month (pending release of official data by the Malaysian Automotive Association), the final number represents an increase of 55.7% over 2018’s TIV. Proton believes it achieved the strongest sales growth among the top 5 brands in Malaysia in 2019, with overall market share estimated to be at 16.7%.

Proton sales 2015 ~ 2019 — *NB: 2019 sales include exports.*

Segment leaders
According to a statement by the company this afternoon, Proton’s sales growth was powered by the X70 SUV, along with double-digit percentage increases in sales for the 4 updated models it launched in 2019. The X70 began its first full year of sales strongly and was the fastest-selling SUV in its class. It maintained its position at the head of its segment for the entire year and ended 2019 with a total of 26,331 units sold, which Proton says makes it the leader within its segment.

Meanwhile, sales of the Saga continued on an upward trajectory after appearing in showrooms on August 6. In December, 3,892 units of the youngest model in Proton’s current range – and also the brand’s oldest nameplate – were registered nationwide, a number which Proton says makes it the most popular A-segment sedan. Total sales for 2019 closed at 38,144 units, equivalent to a 36% increase in volume.

Unfortunately, comparisons of official data will not be possible for another 12 months since the powerful Competition Commission will not allow the transparency of data being published that allows the public to verify such information.

The Persona ended the month with 3,384 units sold, the highest for the model since March 2012 and presumed to be the leader in its segment. Despite a few low months before the improved 2019 model was released, the total sales volume still grew by 29% to 21,876 units for the year.

Proton Iriz and Exora — Sales for the Iriz (left) nearly doubled during 2019 and grew by 97% following the launch of the updated 2019 model in April. The Exora, which has been around for over 10 years, soldiers on and remains a popular choice for those requiring an affordable 7-seater MPV.

Major contributions by X70 and Saga
“The Proton X70 and the Proton Saga are two major ingredients to Proton’s sales success this year. We are humbled by the popularity of the Proton X70 and would like to say a big ‘Thank You’ to all our customers for their support, despite it being a brand new market segment for the company. As for the Saga, with over 41,000 bookings and counting, it remains as our core product and is a popular choice regardless of a buyer’s age, status and purchasing power, making it a car for all Malaysians,” Dr Li Chunrong, Chief Executive Officer of Proton said.

“While sales of the Persona were very strong following the launch of the updated model, the numbers posted in December show many are becoming increasingly aware of the outstanding features, practicality and value we offer in our family sedan. Proton is confident of maintaining these numbers in 2020, so the company has at least three sales leaders in their respective segments,” he added.

Proton to explore e-commerce platforms to expand reach

Proton X70 set to become one of the official vehicles for Public Sector Super Scale officers

With over 500 confirmed orders – and over 400 having already been delivered – the Proton X70 is set to become one of the official vehicles for Public Sector Super Scale (JUSA) officers. The decision by the Malaysian government and SPANCO (the fleet management service provider for the government) to order the SUV for its fleet is an important achievement for Proton.

The X70’s role as an official government vehicle was strengthened recently when a unit of the SUV was delivered to the Ministry of Finance for Dato’ Shahrol Anuwar Sarman, Statutory Bodies Division Secretary for the Strategic Management Division.

While the delivery was of a single unit of the X70, the significance of the event is expected to have far wider consequences. “The Proton X70 has been an invaluable contributor to PROTON’s success in 2019 so we are proud it now plays a formal role for the public services sector. This proves its suitability for a number of tasks including representing various ministries at local and international level events. We are also therefore expecting to receive more orders for the Proton X70 from various government departments in 2020,” said Dr. Li Chunrong, Chief Executive Officer of Proton.

Earlier in December, it was announced a fleet of Proton X70s would be used to support the year-long Asia-Pacific Economic Cooperation (APEC) 2020 forum. This should provide good exposure for the model as well as Proton at a major international event.

“Proton will continue to work closely with service providers such as SPANCO to ensure we can support the need for official vehicles by public sector agencies and government departments. As a Malaysian automotive brand, we want to continue to show our support for the country and play a role in nation building,” Dr. Li said.

First Made-in-Malaysia Proton X70 officially rolls out at Tg. Malim factory

Proton delivers Prime Minister’s X70 gift to the government of Pakistan

Following the visit of Prime Minister Tun Dr. Mahathir Mohamad to Pakistan earlier this year where he gifted the Prime Minister of Pakistan a Proton X70, the SUV has now been delivered to the government of Pakistan.

To date, over 26,000 units of the X70 have been delivered in the domestic market and exports are starting as well. In the case of Pakistan, plans were finalised in March this year to build an assembly plant that will be owned and operated by ALHAJ Automotive, Proton’s business partner there. Vehicle manufacturing is not a new activity for the ALHAJ Group as it has a subsidiary which has been producing FAW vehicles for a number of years.

Production is targeted to begin in 2021 with the X70 as the first of several models that will be sold in Pakistan. The long-term goal is to sell 400,000 vehicles by 2027. Just as in Malaysia, assembling its vehicles locally will allow Proton to have more attractive pricing as duties are lower for vehicles assembled in the country.

Proton Tg Malim — *Parts for the X70 will be sent from Proton’s Tg. Malim factory in completely knocked-down (CKD) packs for assembly at the ALHAJ Automotive plant in Pakistan.*

The brand new assembly plant will be located in Karachi, Pakistan’s industrial and financial centre. The initial investment will be US$30 million (around RM124.3 million) and 2,000 direct employment opportunities are expected to be created in its first 3 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 commissioned.

“Proton sees a lot of potential in Pakistan and as Malaysia is the only Muslim country to have its own automotive brand, both our countries are natural partners who have so much to share with each other. The Proton X70 has won several awards at home and we hope that eventually, it can accomplish the same feats when it arrives here,” said Mohd Khalid Yusof, Proton’s Director of Investment and Promotion.

First Made-in-Malaysia Proton X70 officially rolls out at Tg. Malim factory

First Made-in-Malaysia Proton X70 officially rolls out at Tg. Malim factory

At long last, locally-made versions of the Proton X70 are now being released, one year and one day after it was launched in Malaysia as the first joint product of the DRB-HICOM partnership in the Malaysian carmaker.

Until today, Proton has been making the X70 in China and bringing the SUV in as a completely built-up (CBU) vehicle, just like some models of other makes from Europe and Japan. However, even though the vehicles were made in China, many parts were sent from Malaysian suppliers so even before today, Malaysian-made parts have been incorporated.

One of the reasons for using parts from Malaysia was that the X70 is a righthand drive model and the factory in China doesn’t make such a variant, so parts have not been made there. The other reason could be that the volume required was ‘small’ by the standards of vendors in China and as their supply would not be needed after a year, it was probably not worthwhile for them.

The plant in Tanjung Malim, Perak, has been in existence since 2004 but when Geely became involved, a major renovation was undertaken and a new RM1.2 billion extension was added. New manufacturing processes and equipment were also installed to raise efficiency and productivity along with quality.

Developing the vendor eco system
At the same time, Proton worked together with local and overseas vendors to establish a supply chain for parts required to build its first SUV, would be in place when production activities began. During the preparatory phase prior to start of production some months ago, Proton worked closely with its local vendors to match them with other companies who were already supplying components for the SUV.

These efforts resulted in 7 new joint-ventures being formed as both local and foreign companies started partnerships based in Malaysia to share competencies and production resources.

Other business relationships established include technical agreements and foreign direct investments, resulting in a total investment of RM263 million and the creation of 1,084 jobs as the vendor community gears up to create a pipeline of high technology components for the X70 and future models.

Production hub for RHD vehicles
“Today marks a historical milestone for Proton as we take another step towards being a global automotive brand. By producing the Proton X70 in Tanjung Malim, we have taken a quantum leap in our abilities as this is by far our most ambitious undertaking to date. This new plant will not only produce future products jointly developed with Geely but it will also be a centre for right-hand-drive production as we begin exports to countries all over world,” said Dato’ Sri Syed Faisal Albar, Proton’s Chairman, at the exclusive and private roll-out ceremony held earlier today,

An Conghui, President & CEO of Geely Auto Group, confirmed that Proton’s position within the Geely Auto Group is to be a valuable partner to grow sales in ASEAN markets.

“PROTON has undergone a tremendous transformation over the past 2 years. This experience has worked out very well for us at Geely Auto as we are happy to help Proton realize its global aspirations. We will continue to support Proton as it grows in the Malaysian market and in the wider ASEAN region and beyond,” he added.

Proton sales doubled in November

FEATURE – Teamwork, cars and drivers are all important for success in motorsports

It’s a Sunday night and you’re out with friends at your friendly neighbourhood mamak stall and on the screen is a Formula 1 race. You then think to yourself: “It’s just a matter of driving fast. Anyone can do it.” Think again.

Like other intense sports, motorsports requires its athletes to undergo constant training and be in peak physical form in order to excel. Typically, a driver in a race will have to be able to cope with g-forces higher than those experienced in everyday driving when taking corners in excess of 100 km/h. He or she must be able to feel oversteering or understeering due to tyre grip and the setup of the car’s suspension. In addition to being fit, a race car driver will need to have an in-depth understanding of the intricacies of a car.

For Proton R3’s Mitchell Cheah, Fariqe Hairuman, Syafiq Ali, Admi Shahrul, Nurul Husna, Faye Kusairi and Leona Chin, racing came naturally – but only after they began preparing for the race several weeks beforehand. ‘Weekend racers’ may just go to the track and drive fast but for those who are serious about racing, there’s a strict exercise regime and they must follow a healthy and balanced diet. Trips to the mamak stall are definitely out of the question (at least until after the racing season is over).

One of the drivers (we won’t tell who) even spends some time playing Call of Duty in the name of improving hand-eye coordination. Those who spend time on Playstation4’s racing simulators also gain ‘experience’ that can be useful when they race in the real world. So yes, it’s easy to drive a car, but challenging to race in one.

Teamwork is imperative for success
Another crucial aspect about competitive motorsports is the fact that it isn’t a one-man show. Teamwork is imperative for success – engineers are required to analyse and make quick adjustments to the car; engine and tyre specialists have their self-explanatory roles; a pit crew must be quick and precise at refuelling and replacing tyres; a crew chief, who oversees the technical crew; and a team manager who keeps administrative duties in check.

Typically, a racing team begins preparations several days before the actual race day. The driver(s) will have to work closely with the rest of the crew to ensure that their cars are set up for the circuit – tuning to the suspension is critical as every track has its own characteristics.

You wouldn’t want to use a soft suspension set-up for a track with lots of corners, unless you enjoy being in a boat that’s constantly bobbing up and down. There’s also the fact that the engine and drivetrain have to be tuned properly to ensure the car is able to provide a good compromise between acceleration and top speed.

While a car’s set-up is important, there’s only so much that can be done to boost the reliability of the car itself. For the Proton R3 drivers this year, the availability of the improved 2019 Saga and 2019 Iriz made a difference and both achieved significant success in the annual Sepang 1,000km (S1K) race.

This is no easy feat because these cars are driven at an average speed of 110 km/h. Other than the brief moments they are in for pit stops, they are constantly pushed hard and this year, that was for 9 hours and over 181 laps. The strain placed on the cars and drivers is therefore intense and both must be in top form.

A successful endeavour
Both the Proton R3 drivers and cars rose to the occasion and dominated the S1K. The 2019 Iriz that was driven by Mitchell and Fariqe captured first place while the 2019 Saga that was driven by Syafiq and Admi came in second.

Also impressive was the all-ladies team which managed to blitz past the competition from 26^th on the grid, to seventh overall, ahead of all the other lady drivers. When interviewed, all Proton’s racers attributed the success to the handling and reliability of their Malaysian-made and engineered cars.

All said and done, participating in motorsports events like the S1K takes dedication, discipline and a strong level of focus from the entire team. While many are able to drive well on the roads, participating in a race like the S1K requires more than just good driving skills.

Proton R3 wins Sepang 1000km again – that’s 3 years in a row!

Proton sales doubled in November

Proton is having quite a year after showcasing a strong year-end performance. Sales in November alone actually doubled with an amazing 9,643 units sold. The tally now stands at 89,476 units sold so far this year, which is a significant 50.1% increase (16.2% increase in overall market share for 2019). (more…)

Proton sales grow 46% in spite of market contracting by 1.3% this year

News from Proton has been good all year long, with upbeat press releases arriving at our mailboxes every month. And as the end of the year approaches, the carmaker reports that its cumulative sales volume (including export deliveries) is almost at 80,000 units (79,833 to be exact) after 10 months. This represents a growth rate of 46% in a market where the Total Industry Volume (TIV) has decreased by 1.3% to date.

Pending official industry data from the Malaysian Automotive Association (MAA), Proton estimates its market share to be 16%, which is 5.2% higher than the previous year. It has strengthened its hold on second place in the overall sales chart and is confident of maintaining this position to the end of 2019.

While sales of the X70 SUV have contributed to Proton’s upswing – over 24,000 units have been delivered so far – the Saga has also drawn a huge number of customers since being launched in August. Over 28,000 bookings have been received and in October, the new model posted its highest sales figure for over four years. 4,273 units were sold last month and for the first 10 months of the year, the cumulative total is 30,331 units, which is a 26% increase over the previous year.

“We are humbled by the response our products have received from Malaysian car buyers. In the space of just 8 months, we launched our first SUV and updated all our other models, giving Proton the youngest model range for any car brand in Malaysia. The hard work has paid off with increased sales and we are now confident of being able to sell 100,000 units this year, providing us with a solid base to move forward in 2020 and beyond,” said Dr Li Chunrong, Chief Executive Officer of Proton.

Dr. Li said the company is matching the commitment of its dealers by continuing to invest in training programmes for sales and service staff to ensure the level of service delivered matches the premium image the brand aspires to. “As we grow the number of 3S/4S outlets, we can then deliver an improved brand experience to more Malaysian car buyers. Proton will continue to focus on improving customer service levels as we know it is one of the keys to building long-term brand loyalty,” he added.

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Third Proton dealer outlet opened in Kota Kinabalu, Sabah

Although Sabah is some distance away from Proton’s headquarters in Peninsular Malaysia, attention to its business in the state is just as much as for any other state in the country. As the customer base grows, there is a need to ensure that there are sufficient facilities to provide sales and aftersales services.

In fact, according to Proton’s CEO, sales in East Malaysia this year have seen a growth of 31%, whilst for Sabah, the increase was 39%, compared to the same period last year. “Brand perception has also shifted and this is evident from our increasing sales,” said Dr Li Chunrong, CEO of Proton, adding that the Saga remains a popular choice in the state.

In support of the need for network growth, Shirba Auto World Sdn Bhd has officially opened a new Proton 3S outlet in Kota Kinabalu, the state capital. It is the third Proton dealer outlet opened in Kota Kinabalu, joining 104 3S/4S outlets nationwide.

As a new Proton investor, Ridzuan Datuk Hj Lassim, Director of Shirba Auto World, sees a lot of opportunities in Proton. “The future business outlook for Proton is promising, especially with its range of new car models. It also gives a lot of confidence to the public that Proton is currently managed by a pool of talent with global experience. It is a company which is exciting, international, forward looking and ready to take on the market,” he said.

The outlet has a built-up area of 2,259 square metres with a showroom to view the various models and a service centre with 12 service bays. Customers can relax in the comfort of the lounge while they wait, and they have free access to wifi service.

“The initiatives that are put in place have resulted in us gaining confidence from investors and the market. Many have decided to invest in a dealership because they have witnessed the positive developments at Proton. They see Proton as a solid brand and are willing to partner with us,” Dr. Li said.

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