Proton revising export strategy in face of competition

Proton LHD Preve to Chile 11

Proton will be revising its strategy for export markets as it faces stiff competition abroad, according to Proton CEO Datuk Ahmad Fuaad Kenali at the launch of the Proton Ertiga in Setia Alam.

When asked about export numbers this year compared to 2015, he said, “I think this year has been a very challenging year for us, in terms of competitiveness. We are retreating somewhat but we are not giving up on the export market. We are revisiting our strategy for export, while at the same time making sure our car will be very competitive before we re-enter the market.”

Proton will be scaling back exports of its older models, and Proton faces export roadblocks due to certain regulatory requirements, he added. “So, we are realigning our strategy, looking at how competitive our products are in those markets before we try exporting our cars again,” he said.

Currently, Proton has “five or six markets” which it currently exports to, and it is looking further afield to markets it considers able to accept its products, particularly its more recent products, the Saga, Persona, as well as the Iriz, it said. Prior to these models, Proton exported the Exora and Preve to Chile, and the Proton Waja much earlier in 2007 to Iran as the Proton Impian, for use as taxis.

Does Proton have specific markets in mind, looking forward? “Yes, but nothing has firmed up yet. We are actively looking at some markets that we were previously in as well. But nothing has come to fruition at this point until (the expansion plan) works,” said Fuaad.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Kunta bin Kinte on Nov 24, 2016 at 4:34 pm

    In other words, Proton is saying their Chile and Bangladesh ventures were big failures. The rakyat already warned Proton of this months ago.

    Proton did not listen. So, like Singapore, they went to spend spend spend money to make fancy showrooms. Do you know in Singapore, Proton Singapore sold a grand total of 1 car. Yes, 1 car. I repeat, SATU Kereta sahaja.

    But they maintain the showroom costing hundreds of thousands of ringgit, pay expat pay to the staff and spend millions just to sell one car.

    The same with Proton UK. Just sold a few cars and make few thousand pounds profit but spent millions of pounds paying expat staff sterling (give them good holiday) and maintain posh showrooms.

    Like or Dislike: Thumb up 84 Thumb down 56
    • Lain tanya Lain jawab on Nov 24, 2016 at 5:48 pm

      Take note how CEO didn’t answer on export numbers but talking on other things. Nice taichi deflect skills there. Hehehehe!

      Like or Dislike: Thumb up 52 Thumb down 4
    • alldisc on Nov 24, 2016 at 8:08 pm

      Proton in Singapore is handled by cycle and carriage. Proton doesn’t have an office there since the distance is only 400km to KL. And Proton has stopped selling all cars in UK for the past several years. none of its cars passed euro 5 emission legislation. No point trying.

      Like or Dislike: Thumb up 3 Thumb down 1
      • Bro , are you sure? C&C used to be proton’s agent but gave up since 2002. Thereafter in 2003 proton set up a company known as proton singapore pte ltd to import and distributor the cars. Company still active.

        Like or Dislike: Thumb up 3 Thumb down 0
    • kadajawi (Member) on Nov 25, 2016 at 2:27 am

      They did well in Europe, including UK, for a couple of years. They sold a ton of cars. The problem is that they kept selling those cars, when the competitors got more and more modern, more and more refined. Why would you buy a 1990s car in 2000? Especially in a market that actually gets modern cars? In Malaysia there is less competition, as in the competitors are selling their outdated junk. Not so in Europe.

      Proton was competing well with the Koreans, but while the Koreans kept iterating, kept improving their cars (and I’d say the Wira is a better car than what Koreans were selling at that time in that segment), they quickly fell behind. The Waja was too little, too late, and by the time that one was launched Proton has pretty much lost all momentum and IIRC also most dealerships, who went on to sell other brands (At least dealerships in Germany aren’t owned by the brand. They may be part of a franchise that focuses on a few brands, or they are independent and decide for a brand to focus on/work with)… if they actually survived being given up by Proton.

      Had Proton launched the Waja a couple of years earlier, the Savvy a couple of years earlier, and if they hadn’t held on to models for centuries… they’d be doing well enough there.

      Current models are probably competitive enough, but the support network is gone The cars are better than Dacia, not as good as the Koreans (which have gotten quite expensive)… if priced in between there is a market. Especially in hotter countries like Southern Europe. Smaller budget, more focus on space, and strong air con is appreciated.

      Like or Dislike: Thumb up 13 Thumb down 4
      • CarBuyer on Nov 26, 2016 at 6:24 pm

        If you look back at the history of Proton export sales, they were only successful when the cars were essentially rebadged and contemporary Mitsubishis. This simple fact pretty much confirms the case that “real” Proton products are simply not up to mark on the world stage, if that needed any confirmation at all.

        Like or Dislike: Thumb up 4 Thumb down 0
  • Abang Alza Pakai Topi on Nov 24, 2016 at 4:44 pm

    If can’t sell well in Indonesia, forget about selling elsewhere. If your products suck, admit and move on.

    Well-loved. Like or Dislike: Thumb up 62 Thumb down 4
    • Jaguh Global on Nov 24, 2016 at 5:59 pm

      Kampung sendiri sales gagal, tak payah nak mimpi lah export sales.

      Like or Dislike: Thumb up 40 Thumb down 5
  • john is otak tahi on Nov 24, 2016 at 4:49 pm

    Obviously Current strategy not working!.. Potong pls use brain when going foreign market. And stop thinking on tongkat policy again!

    Like or Dislike: Thumb up 38 Thumb down 5
  • Kunta bin Kinte on Nov 24, 2016 at 5:00 pm

    I advice Proton, please give up your sell overseas policy. From 1985, it has failed. Even top car magazines including Jeremy Clarkson and Vicky Butler Henderson have confirmed, Protons are the most dangerous cars in the world. Even Autralian motor journalist also say the same thing.

    With this in mind, who will buy Proton overseas?

    The best part is, Protons in overseas markets are higher specced and more solid than the local Protons sold in Malaysia. Even with this fact, Europe and Australia has labelled Proton as the most dangerous car in the world and given junk status.

    I wonder about our local Proton models (non export). How safe are our local cars?

    Like or Dislike: Thumb up 55 Thumb down 31
  • market analyst on Nov 24, 2016 at 6:24 pm

    Countries such as India, Thailand, Philippines, Taiwan, Brazil and of course China has the biggest demand for a compact sedan market. Even in Europe and North America too. But it would be impossible for Proton to penetrate the European and North American market due to higher standard of emissions and safety regulation. The Iriz EV could have been introduce in UK/Europe tho.

    Consider both the Persona and Saga being fitted with their latest GDI/T-GDI engine pair with Jatco transmmission (which will only be introduced end 2017/early 2018) and also new safety features technology such as the Lane Safety Assist System that will make both cars score the maximum 5-star ANCAP safety rating tested both in Europe and North America, Proton shouldn’t have any problem penetrarting those markets.

    In the meantime while waiting for the above to happen (2018 latest), Proton should focus and aggressively export its new products, Persona and Saga to ASEAN countries first. Proton could get some of its pie share from Philippines, Indonesia and Vietnam and possibly Australia.

    Get rid of those Preve, Exora, old Persona and Saga. It’s time!

    Like or Dislike: Thumb up 10 Thumb down 22
    • Are you in your dream? It is good to dream,and move on to materialize it by hard work. The problem with proton is they keep on dreaming until shaken awake in shock by the bloody cruel real situation. Grow up,kid.

      Like or Dislike: Thumb up 25 Thumb down 3
    • aminuddin on Nov 24, 2016 at 7:40 pm

      Aggresive ???
      You can’t sell and you want to be agressive ??
      How ??
      ASEAN countries prefer Honda & Toyota and don’t want your junk.
      Engine sucks everybody knows it and yet the rakyat conned into thinking its a brand new engine.
      Tongkat 1.5 bil siphoned out and depleted so now no more tongkat to sustain P1. Bercukurlah !!

      Like or Dislike: Thumb up 24 Thumb down 4
      • Iduncare on Nov 24, 2016 at 9:32 pm

        Even your jepunis overlord “new” engines that derived from older ones

        Like or Dislike: Thumb up 2 Thumb down 2
  • Hot dog on Nov 24, 2016 at 6:32 pm

    I saw a proton savy ad in taiwan car mag many years ago.
    ” you are buying Lotus tech car ..now 0 downpayment and free interest! ” I check the price selling cheaper than Malaysia.

    Like or Dislike: Thumb up 16 Thumb down 4
  • Semi-Value (Member) on Nov 24, 2016 at 6:37 pm

    malaysia also cannot sell want export….muka tembok macam perdana men ini

    Like or Dislike: Thumb up 24 Thumb down 5
  • Proton38 on Nov 24, 2016 at 6:58 pm

    Situation in the Turkey;
    Last year also in 2015, Proton sold 500 cars (the numbers are from the distributor of proton). In a total year!

    In a market of total 54 brands reached proton the 36th place! Number 1 was Volkswagen 107.401 unit, 2. Renault 101.746 unit 3. Hyundai 50.131 unit, so u can c the difference!

    This year in 10 months proton sold 51 units! Yes it’s true! Down from five hundred! At the same period Renault sold 77.295 units it’s the number one at the time.
    At the same period unique brands which are very expensive can sell more than Proton! So Lamborghini, Bentley, Maserati, Ferrari and Aston-Martin sold 98 units!

    Proton finds every time the best worth (!) company to sell the cars! Every time, no ads no no no! No one knows that Proton is on sale in Turkey! There are no Showrooms u can reach easily.

    Please find a better dealer like Hyundai (October 2016-37.157 units) and Kia (2015-13.873 units, October 2016-10.497 units)

    Like or Dislike: Thumb up 25 Thumb down 0
    • Sembang kencang on Nov 25, 2016 at 6:47 am

      Proton is selling rare limited edition sportcars inTurkey.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Silthice on Nov 24, 2016 at 7:07 pm

    Just collaborate with suzuki to create Suzu-Pro, a company to distribute and service Proton and Suzuki cars in Indonesia , Thailand and India . With this company, Proton and Suzuki can share the distribution and service cost together while maintaining their existence in those countries. Suzu-Pro will take over all existing Suzuki showrooms, upgrade them to 3S showrooms and add more branch for better coverage. If the project is feasible in those countries, only that Suzu-Pro expands to more countries.

    Like or Dislike: Thumb up 2 Thumb down 8
  • Bernard on Nov 24, 2016 at 9:26 pm

    Taking cars to recycle centre?

    Like or Dislike: Thumb up 1 Thumb down 0
  • old horse on Nov 24, 2016 at 10:05 pm

    cant even compete locally how to compete in open market?

    1) bring in better mind set and get politician out
    2) get out and stay out for 10 years
    3) bring back lotus concept cars for foreign market using collaboration engine (engine emission is strict and proton has no advantage on this

    Like or Dislike: Thumb up 1 Thumb down 1
  • Zahari Ahmad on Nov 24, 2016 at 10:18 pm

    Export? Where ? Dream lands in DRB managers minds?

    Like or Dislike: Thumb up 8 Thumb down 0
  • P2 salesman on Nov 24, 2016 at 11:48 pm

    Jaguh kampung kuat bising. Tapi bila tak capai sales, semua alasan pun ada.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Well done proton! continue to badge more car, not everyone will like it, but we will buy it ;) its help a lot

    Like or Dislike: Thumb up 0 Thumb down 0
    • oh mak lu cina on Nov 25, 2016 at 11:50 pm

      Dont rebadge (sell with original badge) can sell for higher price and higher sales. Look at Lancer X and Inspira. Why take a more expensive brand and turn it into a cheap brand? :S Big ego deserve to die!

      Like or Dislike: Thumb up 0 Thumb down 0
 

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