Proton Holdings
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Proton Holdings Berhad, commonly known as Proton (stylised PROTON), is a Malaysian multinational automotive company. Proton was established on May 7, 1983, as Malaysia's sole national badged car company until the advent of Perodua in 1993. The company is headquartered in Shah Alam, Selangor, and operates additional facilities in Proton City, Perak.
Proton began manufacturing rebadged versions of Mitsubishi Motors (MMC) products in the 1980s and 1990s. Proton produced its first indigenously designed, non-badge-engineered car in 2000 with a Mitsubishi engine. It elevated Malaysia as the 11th country in the world with the capability to design cars from the ground up. Since the 2000s, Proton has produced a mix of locally engineered and badge-engineered vehicles.
Proton was founded under majority ownership by HICOM, with a minority stake being held by Mitsubishi Group members. By 2005, Mitsubishi had divested its stake in Proton to Khazanah Nasional. In 2012, Proton was fully acquired by DRB-HICOM. Proton was the owner of Lotus Cars from 1996 to 2017. In May 2017, DRB-HICOM announced plans to sell a 49.9% stake in Proton and a 51% stake in Lotus to Geely Automobile Holdings. The deal was signed in June 2017, and Lotus has ceased to be a unit of Proton.
As of 2023, Proton has an overseas presence in Bangladesh, Myanmar, Brunei, Egypt, Iraq, Jordan, Kenya, Mauritius, Mozambique,[3] Nepal, Pakistan, Papua New Guinea, Sri Lanka, South Africa, and Zimbabwe.[4] CKD plants are located in Pakistan, Kenya, Nepal and Sri Lanka.[4]
Etymology
Proton is a Malay backronym for Perusahaan Otomobil Nasional (National Automobile Enterprise).[5]
History
1980s
The concept of a national car was conceived in 1979 by then-
The Proton Saga was based on the second-generation 1983
Proton's sales declined during the late 1980s as a result of the
1990s
On 15 August 1992, the
On 21 May 1993 the
Proton launched the three-door
On 30 October 1996, Proton acquired an 80% stake in the British company,
2000s
The
The RM1.8 billion (US$580 million) Proton
On 7 July 2004, Proton purchased a 57.57% stake in MV Agusta S.p.A. of Italy, valued at €70 million. Proton failed to reverse the misfortunes of MV Agusta and sold the marque to Gevi S.p.A. in December 2005 for €1, with Gevi assuming the €139.44 million debt carried over from MV Agusta.[25]
The latter half of the 2000s marked Proton's comeback in the domestic market, with its vehicle sales growing a total of about 37 percent from 2006 to 2011, significantly above total passenger car sales growth of about 10 percent.
The
2010s
On August 6, 2008, the Proton Saga and Proton Persona were seen doing road tests at the Greater Noida Expressway, hinting at the potential to export Proton automobiles to India.[36] However, negotiations for Proton to establish an Indian branch did not materialize.[37]
In December 2008, Proton resumed product collaboration with Mitsubishi Motors., a similar concept car from Proton's British subsidiary.
The
In January 2012, Proton was acquired by
On 17 August 2013, Proton launched the
The Proton Iriz was unveiled on 25 September 2014 as the company's first B-segment 5-door hatchback.[50] The new Iriz competes directly against the Perodua Myvi in its domestic market.
On 18 January 2016, Proton unveiled their all-new four-cylinder GDI/TGDI and three-cylinder VVT engines.
Proton unveiled their new logo in February 2016, and appointed a new CEO and Deputy CEO in April.
Proton introduced four new models in 2016. The new
On 24 May 2017, parent company DRB-HICOM announced plans to sell a 49.9% stake in Proton to Zhejiang Geely Automobile Holdings.[61][62] Eventually, DRB-HICOM also sold 51% controlling-stake in Lotus to Geely, and the remaining 49% stake to Etika Automotive.[63] The definitive agreement was in July 2017.[64] Proton had owned Lotus since 1996, and largely struggled to turn the fortunes of the sports car maker around. Nonetheless, in late 2016, Lotus announced their first operating profit in over 40 years.[65] Their presence in Proton is said to not affect Japanese auto manufacturers due to being in the market for a very long time.[66] Still, many of Proton's cars benefitted from the Lotus relationship, with the Satria GTi specifically mentioned by car reviewers as possessing good handling traits. Subsequent Proton some models received "Lotus Tuned" input.[citation needed]
Proton recruited Yoshiya Inamori as the vice president of manufacturing, who had previously been involved with Proton back in the 80s when it was founded during his time in Mitsubishi from April 1982 until July 2017.[67]
On 29 September 2017, DRB-HICOM announced changes to the board of Proton Holdings Berhad.[68] Following the signing of a Definitive Agreement with China's Zhejiang Geely Holding Group Limited on 23 June 2017,[69] the Chinese carmaker acquired 49.9% equity in Proton. The announcement on 29 September saw a new board of directors put in place in Proton Holdings, Proton Edar (the local distribution arm) and Perusahaan Otomobil Nasional Sdn Bhd (PONSB).
Three nominees from Geely Holding joined the boards; Daniel Donghui Li, the Executive VP and CFO of Geely Holding; Dr Nathan Yuning, the Executive VP of International Business of Geely Holding, and Feng Qing Feng, the Group VP and CTO at HK-listed Geely Auto. DRB-HICOM are represented by Dato' Sri Syed Faisal Albar, who chairs the boards, and Amalanathan Thomas and Shaharul Farez Hassan. Both are part of the senior management team[70] at DRB-HICOM. On the same day, Dr Li Chunrong joins PONSB as CEO.[71][72] Dr Li is the third foreigner to head Proton. Between 1993 and 1997, the early years of Proton, two different Japanese nominees of their partners, Mitsubishi Motors Corporation, led the carmaker.
Products and technologies
Current models
Current model line up, with calendar year of introduction or most recent facelift:[73]
- Proton Saga (1985–present; A-segment sedan)
- Proton Persona (1993–present; B-segment sedan)
- Proton Iriz (2014–present; B-segment hatchback)
- Proton X70 (2018–present; C-segment SUV)
- Proton X50 (2020–present; B-segment SUV)
- Proton X90(2023–present; D-segment SUV)
- Proton S70 (2023–present; C-segment sedan)
Former models
Former model line up, with calendar year of introduction or most recent facelift:
- Proton Wira (1993–2009; C-segment sedan)
- Proton Satria (1994–2005; C-segment hatchback)
- Proton Perdana (first generation) (1995–2010; D-segment sedan)
- Proton Tiara (1996–2000; A-segment hatchback)
- Proton Putra (1996–2001; C-segment coupe)
- Proton Waja (2000–2011; C-segment sedan)
- Proton Juara (2001–2004; A-segment microvan/MPV)
- Proton Arena (2002–2009; C-segment coupe utility)
- Proton GEN•2 (2004–2012; C-segment hatchback)
- Proton Savvy (2005–2011; A-segment hatchback)
- Proton Satria Neo(2006–2015; B-segment hatchback)
- Proton Exora (2009–2023; C-segment MPV)
- Proton Inspira (2010–2015; C-segment sedan)
- Proton Prevé (2012–2018; C-Segment sedan)
- Proton Suprima S (2013–2019; C-segment hatchback)
- Proton Perdana (second generation) (2013–2020; D-segment sedan)
- Proton Ertiga (2016–2019; B-segment mini-MPV)
Logo and branding
The Proton logo in 1983 was a dark blue shield which encompassed a yellow crescent positioned below a yellow fourteen-pointed star, in reference to the Malaysian flag and coat of arms.[74] However, this emblem was only used for Proton cars which were sold domestically. Proton cars exported to other markets received different badge designs.[75] In 2000, the new Proton logo was used on the Proton Waja which launched in that year.[74] It featured a stylised yellow tiger head on a green roundel embossed upon a dark blue shield, with the Proton name in yellow capital letters in Frutiger font. The standard text representation of the Proton name was also changed from the lowercase italic text "proton" to the uppercase "PROTON".[citation needed]
All Proton cars manufactured after 2000 carried the new badge, both in the domestic and export markets. Then its colour was changed into two-tone, silver and black, which was in use since 2008 with the introduction of the
In June 2016, a new Proton logo was introduced during the launch of 2016 Proton Perdana, which is only a Malayan tiger head with a circle surrounding in three-dimensional style. The new logo is now used on all Proton latest models, including the 2017 Proton Iriz facelift and 2017 Proton Exora Enhanced.[citation needed]
Two years after (i.e., September 2019) Proton's global strategic partnership with
Domestic sales
The first Proton, the
In the mid-2000s, Proton's revenues and sales declined sharply. In 2006, Proton's market share was 32%, down from 40% in 2005.
Sales of Proton cars grew at a stable rate in the latter half of the 2000s and in the early 2010s. The company briefly regained the top-spot from Perodua in June 2009, after the introduction of the
Proton's decline in market share stabilised in 2013. In the first half of that year, Proton sold 64,782 cars, representing 20.7% of the market share, a decline of 1.8% over its full-year 2012 share.[87] However, by the end of 2013, Proton had managed to raise its market share to 21.2% with a total of 138,753 units sold.[88] Nonetheless, Proton's market share has still declined by an overall 1.3% between 2012 and 2013. In July 2013, Proton sold around 16,600 cars, which accounted for 25% in market share during that specific month, the company's highest ever in 2013.[89] Perodua on the other hand sold around 19,200 or 2,600 more cars than Proton in July 2013. The rise in Proton's sales were attributed to the launch of the Proton Saga SV, a cheaper variant of the second best-selling car in Malaysia.[citation needed]
Another factor which continues to play a significant role in the sales of Proton cars is the National Automotive Policy (NAP), enforced by the Malaysian government in the interests of Proton, Perodua,
In March 2013, the Ministry of International Trade and Industry (Malaysia) announced that vehicles manufactured in Australia and Japan will face a gradual reduction of import duties in stages to zero by 2016.[92] Proton however responded positively to the announcement, citing their recent positive developments such as the 5-star ANCAP safety recognition of the Proton Prevé as part of its commitment to progress.[93]
Export markets
Proton relies primarily on its domestic market for the majority of its sales and revenues. Nonetheless, small volumes of Proton cars are also exported to various other countries in Asia, in addition to the United Kingdom and Australia. The company held a far larger global sales network in the 1990s, spanning all six continents and over 70 countries, but intends to regain a global foothold with 500,000 annual sales by 2018.[94][95]
On 24 January 2020, Proton announced that their goal is to export 4,000 vehicles by the end of the year or export 6,000 vehicles if they were offered government incentives.[96]
History
Proton cumulative sales volume in selected markets[needs update] | |||
---|---|---|---|
Country | Cars sold | Time frame | References |
Malaysia | ≈ 3,760,000 | 07 / 1985–present | [97][98][99] |
United Kingdom | 141,209 | 03 / 1989–2016 | [100][101][102] |
Australia | 34,985 | 05 / 1995–2016 | [102][103][104][105] |
Singapore | 23,951 | 10 / 1989–2002 2003 – 2012 |
[103][106] |
Thailand | 19,188 | 12 / 2007–2016 | [103][107] |
Germany | 15,479 | 03 / 1995–09 / 1999 | [108][109] |
Syria | around 15,000 | 2001–present | [110] |
Egypt | around 13,000 |
2000–12 / 2015 and 2018–present |
[111] |
South Africa | around 5,000 | 2004–2015 2022–present |
[112] |
Chile | around 3,500 | 1994–1998 and 2016–2018 | |
Indonesia | around 580 |
2002–2018 |
|
Pakistan | N/A | 2019–present |
Proton first ventured into export markets in December 1986, a year and a half after the launch of the company's first car, the
Proton began importing cars to the right-hand drive UK market from March 1989, and reached its 12-month sales target of 5,000 cars after just six months.[116] The Proton brand was initially a huge success in the UK, but sales were declining sharply by 2010 and the brand was withdrawn in 2014.[citation needed]
Proton's presence in Singapore was handled by Cycle & Carriage from 1989 to September 2002 due to failures to make a turn around.[117] It made a comeback in 2003 with Proton establishing a direct branch.[117]
In the Philippines, Proton was formerly represented by Proton Pilipinas Corp from 1992 with an assembly plant in Alaminos, Pangasinan[118] that manufactured the Proton Wira.[119]
Proton exported 164,153 cars between December 1986 and December 1997.[120] The United Kingdom is by far the company's most successful export market in terms of cumulative sales volume, and at one point Proton set the record for Fastest Selling Make of New Car Ever to Enter the United Kingdom.[121] In 1992, the Saga was ranked among the Top 20 best-selling cars in the UK, outselling its primary competitors from Hyundai and SEAT.[122][123] 100,000 Protons were sold in the UK by 1997.[124]
Additionally, a 1999 survey by the United Kingdom Consumers' Association ranked Proton as among the most reliable and recommended in Britain.[125] The response from 27,000 members of the association revealed that Proton was ranked third in terms of fewer breakdowns, faults and other mechanical problems, placing Proton behind Honda and Mazda, and ahead of Toyota and Ford.[125] Furthermore, 80% of the surveyed Consumers' Association members said they would recommend Proton cars to friends and family, compared to 90% for Subaru, 79% for Toyota, 78% for Honda and Mitsubishi, 63% for Hyundai and 47% for Rover respectively.[125] The 1999 award is Proton's second consecutive, having received similar appraisal in 1998.[125]
However, sales in the UK have since collapsed, with just 208 Protons sold in 2012.[126] Proton cars were once popular in Singapore, at one time the company's second-largest export destination despite its relatively small market size.[127] Sales were also modest in Germany and Belgium during the late 90s, prior to Proton's withdrawal from Continental Europe.[128] Kuwait was once a top Middle Eastern export destination for Proton cars in the late 90s and early 2000s, with an average market share of 8% or 1,000 units sold each year, ten times greater than any other Gulf Cooperation Council state.[129] The Kuwaiti dealer, Bahrah Trading Company had focused on the niche fleet market, selling Proton Wiras to fast food delivery services and taxi operators.[129]
By the first half of the 2010s, the Chinese market had become the largest contributor to Proton's export revenues. Although Proton cars sold in China carried different names and badges under the local
Proton cars were also exported to several countries in Latin America, most notably Chile. Exports to Chile commenced in 1994, and almost 3,000 Protons were sold prior to the company's departure in 1998.[135] However, Proton later expressed intentions of returning to Chile following the ratification of the Malaysia-Chile Free Trade Agreement in 2012.[135] In July 2015, Proton signed a distributor agreement with Andes Motor, and the first official shipment of 50 left-hand drive Prevé units commenced on 1 March 2016.[135] The Chilean launch of the Proton Prevé took place in May 2016, and formally marked Proton's return to Chile after an 18-year absence.[136][137]
Proton announced that they closed Proton Motor Pars, established in August 2011, since it was dormant and no longer in the company's interest to revive it in any way.[138]
On July 12, 2018, Proton resumes exports to the Middle East beginning with 440 units of Proton Gen•2 and 15 units of first-generation Proton Persona in Jordan to be distributed to Iraq as well as neighboring countries.[139][140]
On 21 March 2019, Proton has announced that a plant will be built in Pakistan in collaboration with Alhaj Automotive.[141] Proton has already booked CBU versions of Proton X70 in Pakistan. The orders for CKD versions of X70 are also being booked by Proton in Pakistan which are expected to be delivered in Q3 of 2021 after the completion of the local assembly plant there.[142] The Proton Saga is also expected to be launched in Pakistan in January 2021.
On 21 August 2020, it was announced that the Proton Saga will be exported to Kenya, most built under CKDs shipped to Simba Corp.[143]
It was announced on 13 November 2020 that Proton vehicles will be sold in Nepal by Jagadamba Motors.[144][145] The company will formally launch retail operations by January 2021.[146] Proton previously had a presence in Nepal.
On 28 April 2022, an agreement was signed for Proton to re-enter the South African auto market.[147] On 31 May 2022, Proton announced shipments of Proton X50s, X70s and Sagas in an effort to resume a presence in South Africa with CMH Group as the official distributor.[148] In 2015, Proton left South Africa due to bad market conditions.[112]
Proton announced in May 2023 that they have entered Mozambique in partnership with local automobile distributor Entreposto.[149]
Future
The United Kingdom has been a key export market for Proton since the late 1980s. However, by the late 2000s, British Proton sales had declined considerably as a result of ageing models and depleting stock.[152] In 2013, Proton Cars UK had attempted to relaunch the brand with four all-new models.[152] However, the relaunch was instead postponed indefinitely in view of more stringent European Union emissions and safety regulations.
Proton is currently developing a range of all-new petrol engines in collaboration with
Additionally, Proton has announced their partnership with
On 3 December 2014, Proton announced plans to construct a new car factory in Bangladesh.[154] A deal was made public on 6 February 2015 between Kuala Lumpur and Jakarta to help the latter develop the way for their own national car.[155][156] There are allegations that President Jokowi Widodo is appointing Abdullah Mahmud Hendropriyono as the representative of PT Adiperkasa Citra Lestari, who was known to be associated with ex-President Megawati Soekarnoputri.[157]
According to Steven Xu of Proton's International Sales, the company is still in the process of establishing more distributors to increase its presence in Indonesia as of 10 April 2019.[158]
On 24 April 2019, Proton announced that they'll relaunch again in Australia since sales have declined in 2015[159] after the company established its presence in 1995.[160]
According to Li Churong, the company will expand its presence in the ASEAN countries, such as Brunei, Indonesia, Singapore and Thailand.[161] The company announced on 16 June 2021 that its Indonesian and Thai operations will resume in the near future with plans to be the third biggest automobile manufacturer in the ASEAN region.[162] It was reported that Proton's Thai operations could resume by 2022.[162] But in February 2023, it's reported that Indonesian and Thai operations have yet to resume, including Fiji.[4]
The presence of a Proton X50 being driven in India for road tests indicate the possible presence of a future Proton branch in India.[163]
Partnerships
Mitsubishi
MMC and MC held a minority 30% joint stake in Proton, while a majority 70% stake was held by the Heavy Industries Corporation of Malaysia (HICOM).[164] The Mitsubishi joint stake was later reduced to 15.86%, or 7.93% each for MMC and MC respectively until it was fully sold to Khazanah Nasional in January 2005.[165] Mitsubishi Motors, Japan's sole unprofitable carmaker of that period sold its 7.93% Proton stake earlier in March 2004 in an effort to reduce its ¥1.14 trillion (US$11 billion) debt.[165] The sale of Mitsubishi's joint stake in Proton marked the end of its 22-year investment in Proton.
Citroën
In 1994, French car manufacturer
Youngman
Proton entered the People's Republic of China in 2007 under a strategic joint venture with China
Youngman unveiled the Europestar L5 hatchback and
Between mid-2009 and February 2015,
Honda
On 29 October 2012, Proton entered a collaboration with Honda Motor Company, Ltd.[179] Both companies have agreed to explore collaboration opportunities in the areas of technology enhancement, new product line up and the sharing of vehicle platforms and facilities.[180]
In November 2013, it was revealed that the PRM would be based on the
Suzuki
Proton partnered with Suzuki and rebadged the Suzuki Ertiga.[183] Under the June 2015 agreement, 25 of its 3S and 4S Suzuki dealership outlets have been converted into Proton Edar outlets and bearing both Proton and Suzuki logos.[citation needed]
Geely
PROTON Holdings parent company DRB-HICOM announced sold 49.9% stake in Proton to Zhejiang Geely Automobile Holdings.[184][185] Following the entry of China's Geely as a shareholder of PROTON, PROTON Holdings secured the intellectual properties to the design, development, manufacture, sale, marketing and distribution of the Geely Boyue, Geely Binyue and Geely Haoyue for Brunei, Indonesia, Malaysia, Singapore and Thailand.[186]
Proton announced the launch of the Proton's first sport utility vehicle which is based on Geely Boyue, with touches of local design elements introduced for the Malaysian market. The first batch of the locally named Proton X70 will be imported from China, with localisation plans afoot with the expansion of their Tanjong Malim plant.[187]
With the incoming sales and tax exemption plans for EVs coming in by 2022, Proton announced a roadmap of hybrid, PHEV and BEV products for the future.[188] While no specific electric model was mentioned, there is a possibility of the tech to be led by Geely's new powertrain brand, Leishen Hi-X.[citation needed]
Motorsport
1980s and 1990s
Proton has a significant historical presence in
2000s
Proton's presence in international motorsports peaked when the Petronas EON Racing Team won the 2002
In 2003, the Proton Motorsports Division, also known as "Race.Rally.Research., R3", was established.[189] R3 assumed the responsibility of Proton's motorsports endeavours, which had been held by Ralliart of Mitsubishi Motors. The first model to benefit from R3 engineering was the Proton Satria R3 which launched in late 2004 with a limited run of 150 units.[citation needed]
2010s
Asia-Pacific Rally Championship
Proton re-entered the
The following year, Malaysian rally veteran
In the
Intercontinental Rally Challenge
Proton entered into the
British Touring Car Championship
The
In 2011, UK-based Welch Motorsport contested the BTCC in a
Welch Motorsport's performance improved significantly in the
Welch Motorsport expanded to a two-car team in the
Football
Proton and Norwich City F.C. signed a 3-year sponsorship deal in 2003, becoming the Canaries main sponsor for their home kit, whilst Proton-owned Lotus Cars would feature on the away kit. The deal, reportedly valued at a "seven-figure sum",[206] was the largest sponsorship deal in the club's history. Proton's chief executive officer Tengku Mahaleel Ariff said the sponsorship deal would bring more awareness and recognition to the Proton brand, which it currently lacked.[207]
In 2005, Proton opened a showroom at Norwich City's Carrow Road stadium, featuring products from Proton and Proton-owned brands. It was incorporated into the stadium's Jarrold Stand.[208]
Awards and accolades
- People's Choice, Automotive Category (Silver) – Putra Brands Awards 2017[209]
- People's Choice, Automotive Category (Silver) – Putra Brands Awards 2018[209]
See also
Notes
- ^ Does not include sales of rebadged CBU GEN-2/Persona units, or Youngman Lotus' indigenously designed models.
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External links
- Media related to Proton vehicles at Wikimedia Commons
- Official website
- Company Overview of Proton Holdings Bhd., bloomberg.com
- Proton Holdings Berhad (MYX: 5304), bursamalaysia.com
- A History of the Proton car company