Proton needs to return to export market – Tun Mahathir

Proton chairman Tun Dr Mahathir Mohamad has reiterated the importance for the national carmaker to return to the international market, in order to boost its volume. The former premier told paultan.org that the company cannot rely solely on the domestic market, as it is small – with an annual total industry volume (TIV) of under 700,000 units – and shared with many other carmakers, including Perodua.

As before, he listed market restrictions and protectionism as being the biggest hurdles preventing Proton from exporting its cars, and that the company has to conform to the standards and regulations of those countries.

“The export market is a very important market,” he said. “In the United Kingdom, for example, we were able to export over 25,000 cars – that’s big. But now that the standards have changed, we cannot export even a single car.”

Mahathir added that ASEAN markets are also protective, and impose certain conditions for entry, particularly in terms of duties and taxes. He said that the company has to compete with foreign cars who have set up manufacturing facilities in ASEAN countries and therefore benefit from lower tax and duty rates.

proton chile facebook 1

The Proton Exora and Preve have been exported to Chile since earlier this year

“Now we have to rethink, we have to assemble or produce some parts of the car in the country itself. So we have, for example, gone to Bangladesh – not a very big automotive market, but we had to learn how to produce parts of the car in the country,” he said.

Mahathir also said that the company is also looking to enter the Chinese market, but “the condition is that everything must be sourced in China.” He also talked about Thailand, which has now enforced stricter regulations that have restricted Proton from entering the market.

He said that the company is learning that different countries have different requirements, and that it has to solve the problems for each country, as the ASEAN market is very important. He gives the example of Indonesia, which sells over a million cars a year. “If we neglect these ASEAN markets, of course, we are going to lose out,” he said.

“We are going to go there, but to make our cars acceptable for their country, we have to know what they want,” he said. “So we have to study each market, find out what is it that they want, and reduce our costs through local manufacturing.”

Watch the video above to see the full interview with Proton chairman Tun Dr Mahathir Mohamad.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Proton needs to export their car to Bangla. The people there are more easily to tipu

    Like or Dislike: Thumb up 27 Thumb down 10
    • Betol Tak? on Feb 18, 2016 at 10:22 pm

      Too bad that Bangla workers here also knew how crappy Proton car is.

      For sure they will tell back their folks back home to keep buying Toyota cars even scrap units from Japan and don’t bother about Proton there.

      Like or Dislike: Thumb up 6 Thumb down 5
      • Same L0rrrr on Feb 19, 2016 at 2:14 am

        Your own people also not convinced to buy then you think you can go oversea con foreigners? Sendiri Cakap Sendiri Syok!

        Like or Dislike: Thumb up 7 Thumb down 4
        • karam singh on Feb 19, 2016 at 8:06 am

          hey! why talk bangla ppl like that. it hurts me.

          Like or Dislike: Thumb up 3 Thumb down 0
        • Songlap Songlap Malaysia on Feb 19, 2016 at 10:00 am

          Firstly and foremost, when Proton was exporting to overseas, it was unfair to Malaysians. Why? The Proton car for export market was so much higher in quality than the Protons for Malaysians. Is this fair Tun?

          You created Proton for Malaysians. We suffered 30 years for Proton. All other car prices shot up 3 fold in 30 years because of Proton. And in 1985, you said Proton is for the rakyat of Malaysia to benefit from cheaper cars.

          Is it fair that we Malaysians get so much lower in quality and spec whilst the Proton in overseas, not only is sold cheaper (50% cheaper in Saudi across the whole Proton range of cars), their cars are higher spec and better quality.

          I used to drive a Satria UK Export spec, the build quality was lie Mercedes! I compared that to the local Malaysian Satria, the quality of the local Satria was a joke.

          Another issue Tun, Proton failed big time in every market. Until today, Proton is still maintaining expensive showrooms and giving free holiday to Malaysians manning the showrooms and paying them expat salary. Is this fair?

          Like or Dislike: Thumb up 6 Thumb down 2
    • Bijan on Feb 19, 2016 at 9:07 am

      Don’t worry, later 1.5M Bangla will buy Proton kah in Malaysia.

      Like or Dislike: Thumb up 9 Thumb down 0
    • Jezza on Feb 19, 2016 at 11:26 am

      We don’t know what Malaysian motorists did to upset the gods, but it must have been something pretty serious, judging by the punishment they seem to be getting. Still at least the domestic audience thinks this stuff is the norm – what on earth do they think they’re doing bringing it to the UK? Walk away!

      Like or Dislike: Thumb up 1 Thumb down 0
  • Farhana on Feb 18, 2016 at 8:24 pm

    Ah Pek just shut up and go to sleep la. It’s sickening listening to your nonsense and excuses over and over and over and over again. Only know how to complain and complain and complain and not doing anything to improve our lousy junk cars. Only know how to point fingers and blame people for your own incompetency. Since it’s so hard for you and your Proton to survive it’s time to end these sufferings and let proton extinct. That way you and your Proton don’t have to suffer and lose money and continue to poison Malaysians with your presence and sickening products. We Malaysians will be very very very very very happy if proton is shut down permanently.

    Like or Dislike: Thumb up 43 Thumb down 14
    • Alamak on Feb 18, 2016 at 8:51 pm

      When you implement protectionism policy for Proton, can.

      When Thailand or China does it, then not fair.

      Hypocrite. Stand on your own two feet without crutches then talk.

      Like or Dislike: Thumb up 33 Thumb down 8
      • Albert on Feb 19, 2016 at 1:04 am

        Alamak,talk 3 talk 4(in Chinese) means tokok.
        Pathetic,Shambolic,failure,….recalcitrant.
        How to export,when our own people bash and bash,cos of perennial QC problems.
        1.Noisy Campro engine
        2.Punch CVT condemned gearbox
        3.Now CFE hose pecah at 40,000km
        4.Melting problem
        5.Poor and sub standard service centres
        6.Lunsi sales exec
        7.F..up product range,fuel guzzling all the time.
        8.very high hire purchase default rate ..cos purchasers langsung no standard
        9.Overstaffed,too many dead wood,unproductive
        10.MD blaming 7-10 year h/p loans given out to competitors,not realising it is actually helping boost Proton’s sales.
        Tun,we are not lazy.protong has to go.No point having facelifts,boob enhancements…cos you have gangrene.Time to call it a day and take care of cucu.
        sayornara…Protoong.

        Like or Dislike: Thumb up 21 Thumb down 3
    • Tabouleh! Anti-P1 = Anti-Tun M = Anti-Bersih = Anti-Party Hard = Anti-Dear Leader becum PM = Anti-ABU

      Like or Dislike: Thumb up 2 Thumb down 7
  • someone on Feb 18, 2016 at 8:53 pm

    please start developing more powerful car for car enthusiasts all over the world to buy. you cant win a heart of a car enthusiasts if you don’t improve your engine.

    Like or Dislike: Thumb up 6 Thumb down 3
  • Anyone on Feb 18, 2016 at 9:47 pm

    As with any business, if you can catch up with the constantly changing world, your dont deserve to be around. The fact that Europe has implemented higher standard for cars sold in their market and Proton didnt/cant catch up… Who to blame? Why blame the govt for allowing imported cars?

    Like or Dislike: Thumb up 4 Thumb down 3
  • Aero (Member) on Feb 18, 2016 at 9:54 pm

    What happened to Proton’s SKD plans in Bangladesh ? There has been no news from local or foreign media. Proton said production would start in December 2015, now it’s February 2016. This is exactly why I’ve stopped believing in Proton’s ‘big promises’. Most of the time, it never happens. I still hope that Proton intends to build the Prevé in Bangladesh, and not delay too much. The government of Bangladesh uses many Proton cars, but private car sales in Bangladesh is extremely low. Most cars there are used or reconditioned JDM exports. Some Bangladeshis have said that their country “is a dumping ground for old Japanese cars”. Make of that what you will.

    As for Chile, again, I am not convinced. Until Proton actually launches their car in Chile (they said April 2016), I wont be holding my breath. Of course, I hope and pray all goes to plan, but I’m not counting on it. We’ll see what happens in 2 months time.

    Aside from Malaysia, Proton has assembled cars in the following countries; Vietnam (Wira LHD only), Philippines (Wira LHD only), China (GEN-2 LHD, Persona LHD, and CamPro engines), Iran (Wira LHD, GEN-2 LHD, possibly Savvy LHD), Indonesia (possibly Wira RHD). Currently, Proton does not assemble cars outside Malaysia, but they plan to assemble cars in Bangladesh, Saudi Arabia and China in the near future.

    Like or Dislike: Thumb up 12 Thumb down 6
  • Anonymous on Feb 18, 2016 at 10:50 pm

    to TunM… DUHHH…!

    Like or Dislike: Thumb up 1 Thumb down 2
  • Punj 3Speed on Feb 18, 2016 at 10:57 pm

    Prove to us that PROTON is not a jaguh kampung company and penetrate the US market please.

    Like or Dislike: Thumb up 7 Thumb down 1
  • Shut d fxxx up and close down proton already.. haven’t it drain us enough?

    Like or Dislike: Thumb up 14 Thumb down 8
  • WT Fuchhh on Feb 19, 2016 at 12:34 am

    Get Lotus to do a sports car for proton. Instant upgrade of Proton brand and prestige.

    Like or Dislike: Thumb up 5 Thumb down 6
  • its in the drive to keep moving forward on Feb 19, 2016 at 2:34 am

    Marah Import of Bangladeshi is one thing… many x agree…and go support malaysian people lah…

    Marah PROTON for being local is another… saying wey… import cars lah… i want to pay more and hutang more so i can brag whose car mahal and stylish yet i get low income….

    Our economy is at the verge of falling yet you are bashing the person who tried gaining it back in 1997 98 by blocking imports and making other countries buy our car to get bank negara fill back up to support our bapak emak ama appa mama ahpa popo datuk nenek…

    U only think of outside car are quality thus u need it for safety… biar pocket kering izit?… economy x resolve around u only wey… what y do affects entire community…TM wanted us to support local indystry so our money x fly out much… instead ppl buy more import u spend on other peoples economy…

    Hi korang… ni abang Sally… ingat tak dari upin ipin…
    Abang sally nak cakap..
    U think Japanese use their car because suka2 ka? They sell more than they buy frm others…

    In terms of quality.. 30yrs… want to lawan 75yrs… still 75yrs toyota got airbag problem… why dont we support and see if proton can achieve that… i mean be better in that age… xkan only in bola want to show patriotisme… but in things like this… not at all…

    Want to use proton or perodua..or any brand… u lantaklah.. ur choice… but u use panzer pun.. aeroplane pun… high maintenance but if u x have driving ethics pun x use… trafficlight langgar.. belok masuk lane x signal… then want to mention abt safety and quality… ppl drive top safety cars like lamborghini pun hancur tau sebab x reti bawak safely… these car manufactures struggle to create safetiness for people who only know how to talk abt safety but to provide safe environment NOT an effort was given…

    Perceptions mentality and Pointing fingers…
    Tau nak bash…

    Beri engine gempak so u can modify here there upgrade then whoaaaaa.. kebabush accident.. ckp safety features very low fr proton… even the alphard pun boleh terbabak bumbung ferrari bleh terbakar… so salah siapa… udah2lah tu…

    U x want… u go buy diff brand… u want to help giving ideas and feedback as you are concern of gov funding that they take from u.. no need to use harsh one… mostly people x read angry stuff.. even ur partner bising u walk away.. so lets give good feedbaxk in a mannered and positive and constructive way

    Like or Dislike: Thumb up 7 Thumb down 21
    • Proton achieving 13% TIV in 2016 on Feb 19, 2016 at 9:31 am

      U should go to school and learn some English before commenting.

      Like or Dislike: Thumb up 5 Thumb down 3
    • frank on Feb 21, 2016 at 3:25 pm

      I agree with the last portion.
      let’s give honest feedback and in constructive way..
      good car poor driving attitude and skill will negate everything you put into the safest car.. that is true

      cheers

      Like or Dislike: Thumb up 1 Thumb down 0
  • camtakpro on Feb 19, 2016 at 6:25 am

    Just in line with the 3D logo change! How convenient!

    3D – dangerous, difficult and dirty!

    Like or Dislike: Thumb up 5 Thumb down 0
  • Mahendran Dharma Ratnam on Feb 19, 2016 at 7:35 am

    I think Proton has been all about reputation & respect but they have to realize this are earned, you just don’t get them by selling your cars in the UK…one of the largest growing markets is SEA relatively Vietnam & Myanmar, with lower regulations…and what about India as much as China. India with a growing middle class and a preference for small cars could see the light for the IRIZ…so 10 years ago, the Koreans struggle to enter a Japanese-India collaborated car industry but a lot has change since…car companies even go to the extend or making product/bespoke cars for a selective country..so look at selling volume..look at China and India..as tough it is to penetrate, its worth a try..it could really could be a game changer..so screw the UK and do the right thing for once…do go with the reputations game when you’ve even lost it in your own turf…I guess the gentleman in Proton & Tun know the right thing to do…do you? I indeed hope so…as for all the new promises…I hope its not all lip service..because we have been there..my family has been loyal supporters of Proton for 30 years from the first Saga my dad bought to his latest retiring car..it has been a tough journey..maintaining your cars and justifying to ppl of getting a Proton as much as it has been for Proton itself…I myself drive a 20 year old Proton Iswara for sentiment reasons..so hear your loyal customers out….I indeed hope its In the Drive…and I don’t think otherwise with Proton..as much as I want to be loyal I have been contemplating of other makes simply because of public influence…so please do the right thing…and we will stand by you, Proton..call me at 012-2153736..if you need clarification

    Like or Dislike: Thumb up 8 Thumb down 0
  • Kind of repeating something we’re already aware of: local market is small, locally sourced parts are largely dearer than those made in eg. Thailand or China, target export market has so and so conditions n taxes for going in, just to name a few.
    But how about sharing technologies or platforms? Even the big global players are doing that. We’ve read plenty of news on foreign parties interested to use us as point of entry for South East Asia, but time after time a huge majority fail and worse, they appeared to end that way because of pride over business sense, or political interest.

    Like or Dislike: Thumb up 4 Thumb down 0
  • All these while we have been hearing sister cities. But Bangladesh now is our sister country.

    Like or Dislike: Thumb up 4 Thumb down 0
  • superman on Feb 19, 2016 at 9:29 am

    Proton losing its local sales so fast and lost face and credibility due to their ego and also their useless DRB owners how can they go overseas? fix the problem here first a car is successful at its home base first and then they explore exports.

    Like or Dislike: Thumb up 6 Thumb down 0
 

Add a comment

required

required