Proton picks Pakistan for first overseas CKD plant
ISLAMABAD: Pakistan, which will be the location of Proton Bhd’s first overseas completely knocked-down (CKD) plant, can become the national car maker’s gateway to other countries.
Proton chairman Datuk Seri Syed Faisal Albar said the company’s export strategy was to look at countries that had multitrade agreements with other nearby countries.
“Hopefully, they (Pakistan and other countries) can become gateways for us. Therefore, we don’t need to go everywhere. We just focus on the key markets that have trade agreements with surrounding countries. That will become our doors (for new markets),” he said after the groundbreaking of the plant on Friday.
The event was officiated by Prime Minister Tun Dr Mahathir Mohamad and his Pakistani counterpart, Imran Khan, at a hotel here.
ALHAJ Automotive, the official distributor of Proton vehicles in Pakistan, will make an initial investment of US$30 million (RM122 million) to build the plant near Karachi, Sindh province.
Syed Faisal said Proton had repositioned its export strategy, where it would enter a market that had great potential and be there for the long term.
“Rather than just sending cars CBU (completely built-up cars) to the dealers to sell, the new strategy includes assembling cars in that market.
“Based on this, you can provide assurance to the country’s government or persuade it to pursue a long-term collaboration with the company as Proton creates jobs (for their citizens).”
He said the plant would create an estimated 2,000 direct employment opportunities, as well as 20,000 indirect jobs.
Syed Faisal said Proton chose Pakistan because of the market’s high potential.
“There are 17 cars for every 1,000 people — that is low. We want to enter the market for the longer term.
“Besides that, there are few foreign (automotive) brands in Pakistan.
“Therefore, we believe there’s a first-mover advantage if we enter early. Only by doing so can we gain long-term benefits.”
Syed Faisal said Proton was targeting a production capacity of 25,000 a year starting June next year from the new plant, with the Proton Saga as its first model to be sold in Pakistan.
“We need to position (our products) according to the tax structure incentives in each country. We are focusing on the Proton Saga because its (engine capacity) is 1.5cc and below. The tax structure for (vehicles with engine capacity) of 1.6cc and above is different.
“We are studying (to introduce) other models.
“We are also studying the consumer behaviour in Pakistan. Though some products may work in Malaysia and other countries, they may not work in Pakistan.”
He said Karachi had been chosen as the site of the plant because it was the centre of Pakistan’s automotive industry and Proton’s partner was based there.