Exciting times in store for local automakers
KUALA LUMPUR: National carmakers are expected to reap what they sow and go into overdrive next year, as transformation in both Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua), is progressing well.
After years of being in a turnaround mode, Proton, which is now powered by China’s automobile giant Zhejiang Geely Holding Group Co Ltd (Geely), is said to be gearing up to launch the first product of the marriage, next year.
Geely’s Boyue, which was launched in China in March this year, is reportedly ready to be rebadged as Proton’s first ever sport utility vehicle (SUV) for the Malaysian market in the second half of 2018.
The SUV comes in several choices, namely 1.8 litre (L), 2.0 L and 2.4 L with turbo direct injection engines, complete with smart technology like Apple CarPlay and Android Auto that can interact with the driver’s smart phone.
Social media is abuzz with comments on this development, with some wanting Proton to come out with the right pricing strategy to balance any negative cognisance of Geely’s engine performance, to ensure its success here.
Proton will also need to change market perception that China-made products are usually second best.
Perusahaan Otomobil Nasional Sdn Bhd (PONSB) deputy chief executive officer ( CEO) Datuk Mohd Radzaif Mohamed said Geely, with its width and depth of its involvement in the global automotive industry, was the right foreign strategic partner (FSP) for Proton, moving forward.
“We are leapfrogging in terms of the know-how that we currently have. The technologies available to the Geely Group are now available to us.
“The question now, how much of that technologies can be applied for the market requirement in Malaysia,” he told Bernama.
DRB- Hicom Bhd, which previously wholly- owned by Proton, signed an agreement with Geely in June, where the Hangzhou-based company bought a 49.9 per cent stake in Proton and appointed Dr Li Chunrong as the first non-Malaysian CEO of PONSB effective Oct 1.
PONSB is Proton group’s main production, operations, manufacturing and marketing company.
Apart from PONSB and the holding company Proton Holdings, the other key entity in the group is Proton’s wholly-owned distribution outfit Proton Edar Sdn Bhd.
Getting an FSP for Proton was in line with the National Automotive Policy (NAP), which was introduced by the government in 2006, to facilitate the required transformation and optimal integration of the local automotive industry to regional and global industry networks within the increasingly liberalised and competitive global environment.
Geely also acquired a majority share of 51 per cent of Lotus Advance Technologies Sdn Bhd from Proton.
Besides Lotus, Proton is now exposed to the spillover of other advanced technologies, as Geely also owns a Swedish marque, ‘Volvo’ and ‘Terrafugia’, a United States-based flying car developer.
The Proton- Geely strategic collaboration, hence, is set to open up various opportunities – crosstransfer of technologies and crossmarketing of products to the huge China’s market, Asean and other regions.
Proton’s existing product line is poised to penetrate China as its new market with Geely as a committed partner cum stakeholder.
The Ministry of International Trade and Industry has shared the projection of 500,000 Proton units in annual sales by the next 10 years following the strategic tie-up.
Radzaif said together with Geely, Proton has intensified quality improvement processes and efforts, with exceptional sharing of knowledge and skills, as well as the opportunity for the local team to be trained at Geely centres worldwide. Turn to Page B2, Col 6