PROTON’S Chinese chief executive officer aims to make inroads into the southeast Asian automotive market and drive up foreign sales of the Malaysian marque, reports Reuters.

CEO Li Chunrong said he was ordered by China automaker Geely, which acquired a 49.9% stake in the once ailing Malaysia firm in 2017, to increase sales in Thailand, Indonesia, Singapore and Brunei, and eventually go into the Middle East and Egypt.

He said southeast Asian countries, like Malaysia, are right-hand drive countries, and few modifications would be needed.

He said Proton’s overseas sales stood at about 1,000 cars last year, and the plan was to increase that fourfold this year.

Li, a Chinese national, said foreign sales will comprise 40% of all Protons sold by 2027. 

“We have a good foundation,” he said. 

“We commit that, every year, we will launch a new model.”

Geely, which appointed Li to turn around the Malaysian automaker after the 2017 deal, said Proton had performed well in the past two years and it was committed to seeing the company be a leading brand in Southeast Asia.

Reuters reports that Proton became the second-largest car seller in Malaysia last year, with a 16.7% share, climbing above Honda and Toyota from fourth position.

The Malaysian carmaker also saw its first profit in about nine years.

Li said Proton could beat Perodua, Malaysia’s top-selling automaker backed by Japan’s Daihatsu, by 2022, five years ahead of its target.

Reuters reports that some of the cost-cutting measures that have helped Proton include increasingly sourcing cheaper components from China and letting go of many small local distributors.

Proton has also been trying to get more Malaysian vendors to partner with Chinese suppliers, in a bid to cut costs by 30%.

However such moves have stoked resentment aming local vendors, with some politicians and industry groups accusing Proton’s new management of favouring Chinese dealers. – January 29, 2020.