Geely has inaugurated a new plant in Egypt’s 6 October City that will produce the Emgrand sedan (on which the Proton S70 is based) and Coolray SUV (on which the Proton X50 is based), Ahram Online reports.
Done in collaboration with Auto Mobility (Geely Egypt), the plant is Geely’s first industrial venture in Egypt, Africa and the Middle East. Its two production lines can together push out up to 10,000 Geely-badged vehicles a year for domestic consumption and to facilitate export of around 30,000 vehicles to the Middle East and North Africa (MENA) region.
Proton and Geely have both been in Egypt for some time, with different local partners. The Malaysian brand started its CKD plant there (currently only making the Saga) two months ago, and it also has MENA export plans, so what gives?
Now, we know there’s an LHD Proton X50, because 200 of them have been exported to Vietnam, but with Geely now assembling their own cars for the MENA markets, it looks like Proton will focus on, or be limited to selling budget cars – such as the Saga and other future AMA products – over there.
However, it’s claimed that Proton’s Egypt plant has an annual production capacity of 50,000 (a third of total current production in Malaysia – ambitious, no?) while the new Geely plant is set for only 30,000 units. If the target numbers are to be believed, Proton has the potential to be a bigger volume player in MENA compared to Geely.
On a separate note, Proton is already in South Africa, where it sells right-hand drive (RHD) Geely-based models such as the X50, X70 and X90. The S70 has been delayed, though – business partners were invited to the S70 launch there in end-2023, but there has been no news since. There are rumours that Geely is going to enter South Africa soon with the EX5 (eMas 7).
We reported in November on Geely entering Thailand, Indonesia, Australia and New Zealand – all major RHD markets – as Geely instead of Proton, seemingly reneging on the promise made earlier. The Chinese giant responded by reiterating its commitment to Malaysia as its regional production and R&D hub, specifically Tanjung Malim’s Automotive Hi-Tech Valley (AHTV).
“Geely will enter and establish dealer networks in Proton’s non-existent markets, starting with new energy vehicle products, to build brand reputation, which will be complementary to Proton’s existing products,” Geely Holding Group PR director Ash Sutcliffe told paultan.org last month, which we take to mean that Proton and Geely will not be in the same markets together.
“Geely will leverage its resources in these markets, either to assist Proton’s future entry or to export products from Malaysia using AHTV as a production hub, maximising synergies with Proton and our partner DRB-Hicom,” he added.
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This will hurt, but the truth is that Geely has more recognition that Proton. Last time in 2017 Geli is not known outside of Chyna but now China makes like BYD, Xpeng, Xioami and even Geely is recognized around the world. Also the X, S and Emas series are rebranded RHD Geelys so might as well sell the original LHD Geely.
The mamluks arabs coptics are not frogs under the well, they prefer more the original brand rather than rebadging brand. Bitter truth hurts begets thumb down sigh.
We copied their dressing, culture and religion. Why can’t they accept our cars?
Geely plan to ignore Proton for export will backfire.
Many countries are planning to slap huge tariffs and taxes on china cars entering their countries.
Mr Bodo Trump
The only culprit slapping high tariffs is USA.EU to a lesser degree.
China is restrategising…they r targeting South east asia,Latin America,Africa.
In business,u have to have plan B(Bagus) and C(Chemerlang)or even D.(Dynamic)
The way it looks,Geely is moving away from Tanjong Malim..cos the spoilt vendors refused to lower prices by 30%.Those bunch of blardy recalcitrant vendors fake croc tears to ask funds in Billions from govt only to let P1 use it to pay them instead of R n D,b4 Geely came in.
P1 sales is falling 15% yearly..In 2 years at 100,000 units..Geely will say enough is enough,we will relocate export hubs to Thailand,Vietnam and Mexico.
So,Tanjong Malim with a capacity of 1 million vehicles is just a fairy tale.10 % of that is the reality.
So,P1….Geely will initiate divorce proceedings and leave u in a lurch.
I think what geely is doing is to let Proton sell their homegrown models in RHD markets instead of the rebadged models.
It’s like they don’t want Proton to be known solely based on rebadged models.
It’s either that or Proton got tikam belakang by Geely.
Only time will tell.
Normal to change strategy based on current situations i.e. Geely more recognised nowadays and Chinese cars more widely accepted than a few years ago.
I am sure critics will drum this up as “Geely betrays Proton” but Proton under Stellantis or VW probably would fare worse if we look at the current intense cost cutting by the two groups.
Considering that Geely doesn’t have full control of Proton, it is not a surprise. However, remember that the Geely sourced products, there’s an agreement covering these models and perhaps a production agreement that covers rebadging of products.
More like dumping old tech here again even Egypt get the new x50 with bitter body size more powerful & better fuel efficiency 1.5L 4Cyl TGDi engine
See how other countries (even Egypt) getting the new Geely Coolray, while we are the only country getting the 2018 version of X50 design.
If Proton want sto progress, Proton needs to be free from Geely and develop its own car
In case you forgotten, Proton has been there, done that and almost went bankrupt.
Tikam Belakang!
Tell me about it
Good brand for 3rd world. Hello Geli bye Poton