‘Geely SUVs can drive Proton growth’

KUALA LUMPUR: The most exciting prospect for Proton Holdings Bhd moving forward lies in the rights it secured from its new foreign strategic partner to manufacture sport utility vehicles (SUVs), a car analyst said yesterday.

The deal with China’s Zhejiang Geely Holding Group Co Ltd (Geely) would enable Proton to produce immediate results in refreshing its model line-up by adding a missing segment in its model range, said Hezeri Samsuri.

The SUV is taking the international car market by storm and is the world’s largest-growing market segment.

DRB-Hicom Bhd, which fully owns Proton, and Geely are expected to sign the Definite Agreement to seal the deal today, under which Geely will acquire a 49.9 per cent stake in the national carmaker.

With it, Proton is given access to Geely’s best-selling Boyue SUV and is expected to roll out its first SUV as early as the second half of next year. Proton will manufacture, sell, market and distribute the Boyue SUV under the Proton brand name in the Southeast Asian market.

“Proton needs to reclaim its lost market share and this is no easy task given the fierce competition from foreign brands. “And to manufacture its own SUV will be an impetus for Proton to enter into an entirely new segment,” said Hezeri.

He said the Malaysian consumers were hungry for SUVs as could be seen by the resilient and high growth SUV sales this year amid declining passenger vehicle sales.

The Boyue, which was launched in March last year, was designd by former Volvo designer, Peter Horbury, who now heads Geely’s design studios located in Gothenburg, Shanghai, Barcelona and Los Angeles.

Geely has some 300 designers from various backgrounds, reflecting its seriousness in grabbing a share of the global market.

Hezeri said leveraging on an already best-selling model would fast track Proton’s growth, coupled with reducing its massive research and development (R&D) expenditure apart from providing Proton the quality the Boyue is known for globally.

“As an Asean-born car company, Proton also knows the wants and needs of the local market. Proton will be infusing all the features to make Boyue more attractive and relevant to Asean countries,” he added.

Hezeri said he expected 2018 to be a busy year at Proton’s plant in Tanjung Malim. Bernama

Proton needs to reclaim its lost market share... to manufacture its own SUV will be an impetus for it to enter into an entirely new segment.

HEZERI SAMSURI

Car analyst