Proton looking to sell 400,000 cars per year by 2027 – aiming for 30% market share in Malaysia, 10% in Asean

Proton has come up with a 10-year plan in which it is targeting to sell 400,000 vehicles a year by 2027, The Star reports. In terms of volume projection, the national automaker is targeting a gradual increase in output, with the intention to get to 200,000 units by 2020 and 300,000 units by 2023 before arriving at the 400k mark in 2027.

The growth is part of a turn-around plan that aims to turn the company around “as soon as practicable,” with the intention of retaking local market leadership and becoming one of the top three carmakers in South-East Asia. The plan, drafted by Proton’s management team headed by CEO Li Chunrong, is expected to be presented to the government for approval.

The publication’s StarBiz section, which had access to the plan, revealed that the automaker is looking to reduce expenditure across the board by 30% beginning from this year. The process of cost cutting has already begun, with Li having recently issued a directive to parts suppliers to reduce their prices by as much as 30%.

The automaker has localisation targets set out in its business plan – over the next four years, 80% of Proton’s components and services will be sourced locally, but the company stated that vendors have to place a strong emphasis to quality, cost and reliability.

The company said it will focus on productivity, quality and cost competitiveness as well as enhancing brand value to optimise investments. Within the next decade, Proton says it is looking at securing a 30% market share locally and 10% of the Asean market, with exports accounting for 25-30% of its annual sales.

It has also started work on improving quality, saying that its car quality improved by 30%-50% last year with the introduction of a stringent system aligned to the international standard of Volvo cars. By the end of 2018, Proton is expected to achieve the same quality standard as Geely vehicles made in China, the plan stated.

In terms of products, three new models are set to be introduced, and four of its current models will be upgraded. It also reiterated that production expansion will be moved to Tanjung Malim due to cost and space considerations. An expansion of its sales network has also begun – in the short term, the number of sales centres are set to be increased to 109 by October this year from the current 75.