Proton, Malaysia’s national car brand, opened its first EV factory in the state of Perak. The factory has an annual production capacity of 20,000 units, which can be expanded to 45,000.
Construction of the factory costs a total of 82 million ringgit (approximately $19.47M). Proton receives technical support from its major shareholder, Zhejiang Geely Holding Group of China. Previously, Proton imported EVs produced at Geely’s factory in Hangzhou, Zhejiang Province, China.
Proton was established in 1983 as Malaysia’s first national car manufacturer. Mitsubishi Motors was originally a shareholder, but the capital alliance was dissolved due to poor performance, and Proton came under the umbrella of the DRB-Hicom conglomerate. In 2017, Proton received investment from Geely, and DRB currently holds 50.1% of shares, while Geely holds the remaining 49.9%.
Source: The Nikkei
PSR Analysis: Malaysia has traditionally prioritized a neutral foreign policy, but its economic ties with China have grown stronger every year, as has the presence of its ethnic Chinese population, leading to a pro-China shift. Having a domestic automobile brand is a high aspiration for Southeast Asian nations, and Malaysia’s Proton has enjoyed success in the mass-market segment. Proton controlled 60% of Malaysia’s passenger car market in 2002 but began experiencing operational difficulties around 2005. Following various developments, Proton was acquired by Geely of China in 2017. Since then, Proton has expanded its operations with the support of substantial Chinese investment, including the announcement of its first EV, the ‘e.MAS 7’, scheduled for release in late 2024.
I forecast that this influx of Chinese capital into Southeast Asian markets will continue to accelerate rapidly. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
