According to Deputy Finance Minister Datuk Ahmad Husni Hanadzlah, Proton is currently operating at a “break-even” level and needs to be manufacturing an additional 100,000 cars a year more than its current 150,000 cars output.
He also added that Proton is targeting at least a three-fold improvement in terms of economies of scale by the year 2015. By then if things go as planned, 60% of its revenue stream will come from export sales.
I’m not really sure how these figures are calculated… “break-even” could mean “surviving”, at least in terms of supporting all its intensive overseas marketing activities. We’ve so far seen launches in countries like South Africa, China, etc, and these marketing activities are vital to build brand awareness and see any significant increase in export sales in the future.
It’s no secret that Proton’s current volumes don’t justify self-developed models. A shorter-term target would be 40% of revenue to come from exports by 2010, let’s see if they manage to achieve that before thinking about 60%.