One of the most pressed-upon topics involving Proton is its participation in various export markets. The public has long complained, why are Proton cars sold in foreign markets so cheap? Well, Proton chairman, Tun Dr Mahathir spoke to us to better explain why the conundrum exists.
The emphasis here is on achieving volume, according to Tun Mahathir. Ensuring that a company maximises its production capacity is an integral part of staying in the vehicle manufacturing business. In our interview with the Proton chairman, he provides us with an effective example that best explains the “gains outweighing costs” idea.
It is because of this need to ensure that Proton hits its production volume target that it may appear that the national carmaker is losing money in the export market, but the truth is, it isn’t always that clear cut. For a more defined view on the matter, check out our video interview with Tun Mahathir.
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Oh kampung Rakyat, Tun DrM finally admit he sell more expensive Proton car to Rakyat sendiri !!! So he admit Proton does still way expensive compared to original price even in Malaysia market !!! Time to wakeup Rakyat (being cheated by Proton over 30 years) !!!
Proton is just not a focused company. Proton and Hyundai started about the same time. Hyundai maybe started about 10 years earlier. Just see where both companies are.
Hyundai is a global player. They sell about 9 million cars per year globally. They are No 4 in world rankings for car sales. Toyota is No 1.
Proton, which stated about 10 years later, with MITI 100% protecting them and forcing 30 million rakyat to buy their cars, all Government departments strictly told to buy only Proton every year, PDRM also strictly told to buy Proton every year, Bomba, Telekom Malaysia and all GLC also told to buy Proton every year and yet, it can go into financial difficulty and about to be bankrupt.
Every year also Spanco buys berpuluh puluh ribu Protons to leave to the government. Infact, of the 100,000 sales Proton makes per annum, 80% to 90% is bought by the Government themselves.
How can Hyundai and Proton be so different. Both started about the same time. But Korean Government never force GLC and Government department to buy Korean cars and yet, they can do so well Globally.
Something is wrong with Proton. It needs to be shut down. Proton has the same problem. Given so much of help and BOTH also now sucking the Government big time.
Now only some Malaysians know they are con by Proton? Support Proton if you like to be con
Talkok so much for what? 2 sentences enough:
1. No one pay for overpriced junk at abroad.
2. Local Proton expensive to cover export losses.
Hyundai was founded in 1967
Bodoh piang… Nak tipu pun tak reti.
Goverment not buy.. All free.
Let me tell you why. During hyundai early years, foreign car wouldn’t survive a single day without a scratch. Its called patriotism. Korean car manufacturer holds almost 95% of market cap, and with strong domestic demand, they are able to push themselves towards where they are now. Now that hyundai became a global player, Koreans are slowly lifting the tariff imposed on foreign cars.
Malaysians kena tipu big time. Every single model in the Proton line is sold for half the price in Saudi countries.
We Malaysians are subsidising rich Arabs. When we pay RM60,000 for a Waja for example, the super rich Arab pays RM30,000 for the same car but with higher spec, more airbags and more safety features.
Why is a Malaysian Made car, Made for the people of Malaysia, being sold so high in Malaysia?
The whole purpose Mahathir gave birth to Proton in 1985 was to give an affordable car to fellow Malaysians. Proton cannot hide by the fact that taxes are high.
The spirit Proton was created was to help Malaysians. That is the whole reason of its inception. But it is not helping Malaysians. Because of Proton, all other car brands have artificially been going higher for the past 30 years. They have been strictly told to do so.
And parallel, the Proton car price also have been going higher as well to follow suit the other brands who have been strictly directed to sell at a high price.
So, what is the purpose of Proton’s inception in 1985? It is not helping the rakyat at all because, as we know, globally, car prices are so low and cheap.
It is high time we question, whether Proton needs to close down or not. Proton defeats its purpose of birth. In 1985, Mahathir promised everyone that the car would be cheap and affordable to everyone.
Well, the car is cheap in Saudi, at 50% the price. Why can’t we benefit from this price? Isn’t Proton created for Malaysians?
FYI buddy, rich Arabs doesn’t buy Proton.
Long story short to con own rakyat
Wow…The whole week full news about Proton.
The theme should be: “Proton Sympathy Road Show”
Let’s cry for Proton! They are begging for our mercy and apology! Repent!
Hahaha, serves you right Proton. We rakyat suffered for the last 30 years and you expect us to give you another 30 years of chance again?
No way in hell!
It was known all along.
Maybe it is time for me to stop bashing Dear Leader and DAP. This has got me thinking. I see what you are saying. Why is Proton, created and invented for Malaysians, being sold to us for so mahal mahal?
My eyes are beginning to open today.
Support P1 = Support Tun M = Support Bersih = Support Party Hard = Support Dear Leader becum PM = Support ABU
You can cheat in election to win forever but not so in car market.
Rakyat is smart enough not to vote for party Proton anymore.
Better vote for party Honda, party Perodua and party Toyota.
Party Honda is okay. Say NO to Party Moving Coffins
I dont think people being cheated.instead they have no choice
As much as I hate to pay more for a local version, but if you look at it STRICTLY from a business point of view, scale of economies is essential to survival. Scale keeps cost and component prices lower than lower volume outputs. It’s a balancing act i dare say between national interests, people and business survivability. To put things in perspective, Hyundai/Kia too sells their cars higher at home in Korea, but they are selling cheaper overseas (not to mention heavy investment in marketing too overseas)
It’s good to sometimes air our grouses related to end-user welfare, but it is good also if we can sometimes discuss it from other points of view.
Who says in Korea Hyundai/Kia is selling more expensive than foreign country? Please refer to the website below.
Heavy investment on marketing is no choice, due to branding.
What you mean is in order to maintain national interests, people and business survivability, you should keep buying Protons & encourage your whole family to do so as well.
Hyundai Korea Price
http://www.hyundai.com/kr/showroom.do?carCd1=RD020&WT.ac=gnb_carkind_sonata#showroom-cont-1245
Hyundai Australia Price
http://www.hyundai.com.au/shop/calculator/quote?model=Sonata&variant=103&postcode=2570&pbuser=P&colour=Coast+Blue&options=
Proton ditongkat oleh rakyat Malaysia.
beribu ribu tahniah umno berjaya
Proton adalah untuk UMNO dahulu, sekarang dan selamanya
not only cheap but better specced
People ask you why it is cheaper out there, you talk about volume pulak. No relationship here because there’s no volume out there at the first place! Is Proton selling 500K of cars outside the country? NO. Period.
So in other words, proton still untung even selling cheaper to other countries.. just that untung not so much from each sales compares to the ones selling in Malaysia… because targeting high volume to other countries. Aduiiii…. well at least we are not subsidizing foreign sales.
What a load of crock Tun! Why hasn’t VW and the Koreans used your same formula when they came to Malaysia? Don’t forget that you are not also selling more expensive in your home market, but low quality and low specs as well. Malaysians were not only grumbling about the prices, but discrimination on specs and quality too.
What a disappointing interview by Paultan, if you were going to ask the question, at least take the trouble to cover all angles of the issue on local vs export models.
Yeah the interviewer need to grow some balls and ask more hard questions. That old man can take the heat.
somehow i dont understand that explanation…
Kesian la Malaysian and this sickness called Protonitis. The whole world knows every country whom produce cars will sell way cheaper within their country then only sell with higher price overseas eg Germans with their cheaper locally priced cars: Mercedes, BMW, VW, Audi, French with their Peugeot, Renault, Swedes with their Volvo, Koenigsegg etc etc Japanese with their Toyota, Honda, Subaru etc etc, Americans with their Ford, GM etc etc, UK with their Jaguar, Land Rover, Rolls Royce etc etc, Italians with their Ferrari, Fiat, Lamborghini, Pagani, Lancia etc etc and Koreans with their Hyundai, Kia ,Daewoo etc etc EVEN China and India with their own cars are cheaper locally AND Malaysia is the only nation doing things the other way around. Sad sad story :(
This happens because the volume proton sells in malaysia is much bigger than volume that they have overseas. If they sell much higher volume overseas, they can probably switch it the other way around just like what korean and japanese did. But even if they finally can achieve that, i honestly doubt so. Its already a culture here. Not just in proton, but other companies as well. Goodies for foreigners, scraps for the locals.
P1 u reap what u sow… now ur cars are selling lesser by the day. Told ya… don’t trust TunM no more..!
Support P1 = Support Tun M = Support Bersih = Support Party Hard = Support Dear Leader becum PM = Support ABU
with cheap price also foreign countries are not keen to the brand LOL .Proton is the cheapest among the car in Singapore but still perodua are more can see on the road.
sales in Uk and Aus not even hit 200 unit per year ? focus on your own country 1st la PROTON!!!
He did not answer the question or he is just playing around with words?
So meaning if Proton drop the price in local market it can also boost the sales? so why only for export market?
Kanene…..
Volume, Cost per car sold, Staff costs, that’s all just accounting nonsense. What finally matters to a company and the shareholders, is BOTTOM LINE!!! If bottom line still lose money, that’s it… LOSE MONEY!
Therefore, BOTTOM LINE IS, … Rakyat Malaysia paying (suffering) more to offset the loss incurred to gain market share, volume, etc etc etc.
This is double talk from TunM… he avoided answering the question! We all know what economy of scale is all about… he’s saying P1’s production reduction from 200k to 100k units per year affects the cost per unit… of coz it does… but he doesn’t mention that all the cars produced for local n export market comes from the same production… so if cost per unit is such… why is the export unit selling cheaper than the local unit…? THAT he avoid to explain.
Because the local units are using low quality parts, produced on a different production line.
Got answer = no answer.
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.
Hands up if you think he did not answer the question. Tun is talking about maximizing production volume but it still doesn’t explain why cars are being sold cheaper in foreign markets and with better kits as well. Lower cost from higher production should translate to lower price for all the cars produced, not just for the export market cars.
Echoed. In fact, for Proton Saga, there’s two different spec for Australian and local market.
For Australian market, that one is truly a ‘rakyat’ car (or people’s car). Comes with 1.6L engine (at least FC not so high compared with 1.3L), 4 – 6 airbags, not to mention compulsory ESC and ABS. While for local market, it’s better called ‘Pentan Sakua’ (even so-called Plus spec also didn’t even comes with ABS not to mention ESC)
In example, if the manufacturer need to produce 2k cars per month and the car must be sold at RM40k per car.. But the manufacturer receives orders for 1k cars only.. So the manufacturer need to sold the car at RM80k..
The question is, whether sales in Australia equal or exceed the target of 2k cars per month or more sales compare to Malaysia?
I don’t think so, Dr Mahathir..
Even the WAJA after ROI, the car still expensive.. The national car still being taxed.. The tax approximately more than 70%..
Not Proton fault, the government put hi-tax to national car..
Stop bluffing!!!
Why cry now at the verge of extinction? You had 30 fking years..the only thing you did is screwed the rakyat..what goes around comes around. Suck it up & deal with it, preferably without wasting any more rakyat’s money.
when internet are readily available, Tun has no choice but to admit.
The build up quality are also different apart from the selling price
Tak payah white wash, the fact is Malaysians are being treated like fools, subsidising Proton export markets by getting inferior specs and quality cars at a higher price for 30 years
I have been always echoing the same opinion with Tun M in most things, but this is kind of BS. Of course an organization can save cost producing more outputs with the same manpower.
But just how much more the export market make sense compared to local market? Why don’t just sell it cheaper locally and gain the same volume increment?
Rather than ‘admitting’ that Proton indeed sells car cheaper in foreign market, why don’t just give some explanation on price balance/optimization with other cars in the segment.
Let’s say a Preve is RM65k and Corolla Altis 1.8 is RM110k in Malaysia, but in Australia, the Corolla is priced at AUD35k, therefore Preve must be sold at AUD14-16k to balance the price. Because other cars than Proton also sells much cheaper there.
So you admit that rakyat kena tipu bayar Proton mahal.
Good job Proton.
hidup proton hidup proton
proton is for better future
stop complaining
Take the Ford Mustang for example.
In the US, the Ford Mustang ECOBoost starts from around RM107k.
The same car would cost RM435K for the cheapest model in Malaysia!
If you think it’s the export costs or whatever, NOPE!
Tax tax tax.
Even in the UK, the ECOBoost Mustang starts around RM181k
What nonsense! If u want to achieve volume, sell cheaper to your own ppl and u will get the support locally! Making money from your own ppl and sell cheaper to outsider?
Then y not sell cheaper in Malaysia market in order to get more volume n at the same time win more market share le.
Cannot Sir. Saga profit only Rm500.
Mana cukup kasi diskaun RM4000 lagi.
Indeed, Saga profit is RM500 as opposed with Vios profit that is RM500 multiple by 50 at least (become min. RM25k clean profit for J-spec. TRD spec is more lucrative, clean profit for one unit of Vios TRD equals with one whole unit of brand new Saga Plus)…
Even nowadays, quite a few UMW Toyota salesman flock in to Proton showroom to purchase saga for their children (surprisingly all of them choose black colour).
If profit only RM500, how Proton sell cheaper in export markets?
Is it me or recently there are a lot of long comments bashing proton (in each and every proton articles)? Seems to be from the same person.
Oh …. conundrum too exist on why people are avoiding Proton now. It just not as easy to answer this question. Many factors involved. The benefits of getting other brands are more than buying a Proton. Btw is there any benefit of buying a proton?
Bcoz malaydia r so rich they subsidised d whole world.. nvm the weak ringgit… nvm the crude oil price tumbled
So you are telling us Malaysian that the cars can be sold cheaper but just that we Malaysian in a developing country need to pay more and subsidy the price for exported Protons in Middle East or UK.
Seriously this is beyond absurd and disgusting, basically you rob the poor to feed the rich just to get some recognition or Fame??? Seriously DrM no wonder Proton and the country you once ruled was so badly managed because of this kinda screwed up policy.
(I seriously wished no one will buy your messed up Proton and better close shop for stealing from the poor and feed the rich where they don’t even care about you – no wonder you got back-stabbed so many times maybe you deserve it)
I ain’t no finance guy but doesn’t greater economies of scale in Malaysia due to higher sales mean cheaper prizes? It’s obvious he is struggling to explain….
Because of pronto, block other car manufacturers build at our country and our country lost a lot of jobs!!! … like Honda, Toyota at Thailand and Indonesia.
This explanation does not make practical sense.
In the year 2004, i needed to buy a car and I decided on a proton as they had the cheapest new sedan car then.
When I went to the sales outlets, most of them did not have ready stock.
In one outlet, I vividly remember a salesman telling a disappointed elderly couple “it is not that I don’t want to sell you a wira, we got no wira to sell to you.”
My recollection was that back then, there was a waiting list although Proton had a monopoly of a certain market.
I finally bought a manual Waja for slightly under 60k and regretted by purhase 18 months later.
Based on what Tun is saying, why could they not have doubled the production before 2004, and sold me a Waja for about RM30K?
Even if it was RM40k, i would still have been happy.
To top up the hardship, my interest rate was more than 3% and the loan tenure was only 7 years.
Why is this man twisting facts and attempting to rewrite history?
Based on what he is saying, if they mass produced the Wira, it would have been about RM20k or less back then. Why didn’t they do this?
Is this not a company that cares for the Rakyat’s needs?
Because he is full of lies.
I don’t see any explanation given. What this old senile man says is that by selling cheaper to foreign countries, it increase the volume of output. Therefore, it reduces the expenses of producing. This is not just a volume game, if only volumes gives u lower production cost. Then you might just sell USD5k for each car, then the volume will hit 10million annually. Ultimately will you reduce your production cost? This old senile man is just trying to fool every Malaysian, if you want to increase volume make it locally first. Sell cheap to your locals then only consider foreign markets. Which car producer are selling much expensive in its own country than foreign country? Only PROTON.
Mahathir ni bab proton lagi aku tngok dh x betul die ni
What kind of shit volume? Every year increased by 100%?
Sometimes I question why I am so harsh on Proton. But I just read any junk nonsense like this and automatically I get angry again together with their Maha-firaun chairman. The Egpytian pharaohs also are losing out to the scale of this megalomaniac dictator.
Not gonna waste my time explaining anything, just know this: What the heck does this old man know about car manufacturing?????????? And only a crony website will give him the attention
Another Ahmad Maslan’s statement
Throughout the whole clip, I didn’t really see what is Tun trying to deliver. His answer was moving round the circle with no clear answers to the question.
Maybe I’m too dump which distinguish my level between his?
Maybe I’m too stupid which cannot understand what he says…
The reason is simple: Proton is used to con the rakyat but he cannot say it
My question to Tun, why not sell car at cheaper list price than current to all Malaysia? That will give you even bigger volume compare to overseas market right? I doubt the consignment to overseas is any greater than what they have sold. If selling by volume will determine the cost of production, isn’t that creating bigger sales volume (by reaching more customers) is directly helps to reduce the cost per volume? And that doesnt affect much to GDP as well.
Now, it’s a matter of do or die. If they need the volume desperately to sustain such big overhead. Drastic move need to be done, or Proton will dies in natural course. Sell cheap to sell more. Or Make less with great quality and mark up the price?! That they’ll need a new brand name though.
You don’t need Tanjung Malim and Shah Alam doing the same cars for Proton right, have either one as assembler plant for other brands? Be an assembler for other brands, that will make the company profitable.
If the company is keen to help the people, make super affordable cars, so every Malaysia can have lesser debts on car loan and that I am pretty sure contribute to GDP as well.
he did not answer the question at all. In essay writin, you will get zero mark.
Similar to hyundai.. why they sold in us cheaper with better quality…. compare with in korea….common.. basher.. wake up la…
Why Proton cars are expensive in Malaysia compared to oversea??
Why??
Becoz of Anwar Ibrahim….
hahahaha
lu tatak mau ploton lu pigi bili itu myvi. lu mau harga tulun lu tulun itu najib. ganti sama guan eng. lafizi. ini semua boleh kasik turun harga proton, harga minyak, harga dili, semua boleh. lu tatak pecaya? gomen salah woo… ploton by umno you go vote DAP la. see in penang? balang manyak cheap maaa.. semua olang sudah titun in penang maa.. mana ada ploton di penang maaa.. siow punya ploton
Hi,
When is the proton Exora expected in the Egyptian market hopefully ?
Proton gagal dari segala segi marketing, jualan, pengeluaran, pengurusan, servise, kewangan sebab tu la jadi camtu.
Its bcos malaysian r stupid & easily connned. Selling cheaper to overseas with higher specs like heating seats etc. They have to sell cheaper in overseas bcos overseas cars r damn cheap with no high import duties like us. How to compete selling low quality car with others high quality cars that r really cheap. Accord in US cost only RM80k. Guess how much in malaysia ?
I came to look for answers only to find more questions.
I’m already a Protonophobia. Will never buy Proton again after series of unfortunate events dealing with “genetic disorder” on my 1st car Gen2 (2004 model) – power window issue, squeaking auto-tensional, water leaking in tail light…u name it
Well i dont believe that saving on the staff salary can cover the loss from selling at damn cheap price abroad (if that is the true reason of it)
Why bother pushing the 200k volume out of the country if u can make them sold out in local market by selling it at affordable price for Malaysian?
But if the main reason is “cheap because we dont pay…DUTIES” (noticed hanging statement at the beginning of this video) – then it makes sense to me.
Did he actually answer the question why are local proton cars more expensive than export protons? I dont find how increased quantity translates to less costs anyhow related to the question asked. Or its just simply local proton cars more ex so that they can cover export market losses?
hafriz asked the wrong question. Should ask “why are proton cars so expensive in Malaysia?”
To conclude for fellow Malaysian , we are slave in our own country. Dictatorship, brainless & eunuchs are ruling on us. Majulah Malaysia.!!
I live in UK, i will not buy a Proton here not because i dont love my country nor do i not want to see it progress. I will simply choose a car that best warrant my hard earn cash, same way i will choose any other commodities. But unlike any other badly run company, Proton is like a cocroch which refuses to die due to the fact that for the sake of “making progress and make our nation proud” i guess we’ll just have to bite our time until the governor decide its too foolish to delay its unevitable demise.
What a joker!! Can’t they turn it the other way round, sell it more expensive outside, and cheaper (with volume) within Malaysia? Joker!