A bombshell report from Autocar suggests that Proton is on the verge of a major return to export markets. The British publication stated that the national carmaker is set to begin selling cars in the UK again, quoting sources close to CEO Li Chunrong.
This huge planned expansion of exports, which will also see the brand enter new right-hand-drive markets in Asia and Africa as well as returning to Australia and New Zealand, is said to be part of Geely’s multibillion-dollar investment into Proton’s new headquarters and manufacturing base at the Automotive Hi-Tech Valley (AHTV) in Tanjung Malim.
Crucial to those plans is the increased production capacity as part of the factory’s redevelopment, which will enable the company to finally pursue its ambition of massively growing exports. “With the investments in place, Proton will have the means to return to markets it departed, while also entering new markets,” one source said.
Autocar added that while no official timeline was given, it was told a return to major markets would happen “later this decade.” Proton pulled out of the UK market in 2014, the publication said.
Plans for Proton to become Geely’s right-hand-drive production hub have existed ever since the two companies entered their strategic partnership in 2017, but they never quite came to fruition. That’s to be expected, given the company has had to focus on growing local sales – a task made more difficult by the ensuing COVID-19 pandemic.
It has done so, consolidating its second position in the Malaysian vehicle sales standings and surpassing 150,000 sales annually for the first time since 2012 – even though it has not come close to its goal of toppling Perodua.
Now that things seem to be stabilising locally, the building blocks appear to be put in place to allow Proton to massively grow exports. The revamp of its Tanjung Malim facility is set to bump up its production capacity to 500,000 units, 50% of which has been earmarked for exports, Li told us late last year.
And a recent development has given Proton a pathway towards cracking international markets. The electric eMas 7 (stylised as e.MAS 7) SUV, which the company insists was co-developed alongside the Geely Galaxy E5 instead of being a simple rebadge, was designed for right-hand-drive markets from the get-go. This differs from the usual practice of Proton converting an existing Geely model to RHD after it goes on sale in China.
The move is not only contributing to a much shorter lead time (the eMas 7’s planned December launch will come just four months after the Galaxy E5 went on sale in China) but also provides Proton with an immediately competitive electric model with which to break into major markets. This, at a time when EV sales are skyrocketing and an influx of Chinese brands is softening buyers’ attitudes towards cars from lesser-known regions.
There’s another reason why using the Proton brand for exports works for Geely. Last month, the European Union imposed additional tariffs on Chinese-built EVs, ostensibly in retaliation for the Middle Kingdom’s “unfair” subsidies on homegrown EVs. Selling Malaysian-built EVs in the UK would sidestep any potential price increase in the event the country follows the EU’s lead.
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This is actually very good news to the country as a whole.
3rd-world country like UK
Desperately need cheap cars
Looks doable considering it should be using the latest Renault + Geely partnership engine along with some design changes from Proton to make it seems like a non PRC car at least they would have a chance to sell it cheaper to buy.
Return with what?? Rebadge Geely?
P1 doesn’t even have a strategy whether to bet on EV or ICE. A strong brand needs to stand for something.
Less and less people knows about ThunderCat
At least P1 did not have dubious safety ratings unlike P2/Toyota/Daihatsu.
Does Proton have a dealer network set up? They haven’t sold cars in the UK for a decade… or do they have an alternative plan for sales. Delivery by Amazon perhaps.
they can use volvo dealer..
Curious to know what is Geely’s opinion on this. The proton brand is viewed as a cheap low quality brand in western countries. Geely would probably have much better success if they sold the cars under their own brands there.
Advantage for Geely can use Proton for export to markets where China products are sanctioned or heavily taxed.
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