Geely opens Egypt plant to make Emgrand (S70), Coolray (X50); Proton limited to budget cars in MENA?

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).

Geely opens Egypt plant to make Emgrand (S70), Coolray (X50); Proton limited to budget cars in MENA?

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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