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%.
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AI-generated Summary ✨
Comments on the blog post highlight frustration with Malaysia's high car prices, blaming government policies and taxes for limiting affordability and creating an artificial automotive market. Many express skepticism about Proton's management, questioning its profitability, quality, and reliance on government support, and suggest that economies of scale are not achieved due to low production output. Several argue that global comparisons are unfair due to different economic conditions, and emphasize the need for fair competition and reduced taxes. Some suggest Proton should innovate by sharing platforms and sourcing engines externally, while others believe local initiatives are hampered by mismanagement and political interference. Overall, sentiments are largely critical of Proton’s current state, calling for more realistic pricing, better quality, smart management, and sustainable growth strategies.