Foreign capital could be injected as early as the first quarter of 2017 to help Proton recover market share under a state-sponsored restructuring plan.

“We have sent out 14 requests for proposal in the past few months and eight of them have responded,” Chief Executive Ahmad Fuaad Kenali told the Nikkei Asian Review (NAR) on the sidelines of a new model launch.

Kenali said the eight were all reputable global carmakers, and that Proton partnering a foreign brand would accelerate the development of new models for Southeast Asian markets and reduce costs.

On Tuesday, Proton launched its second generation Persona, a 1600cc B-segment sedan designed for young adults. Costing RM46,800-RM58,800, the Persona is touted as the “cheapest” car in its class.

After launching the Persona, International Trade and Industry Minister Mustapa Mohamed was quoted by local media as saying: “I am made to understand that by the first half of next year, Proton will be able to identify its strategic partner…this is certainly a huge effort and a lot of discussions must be done.”

The minister said the government would not get involved with all the decisions Proton makes in choosing a foreign company as its strategic partner.

In June, the government stepped in with a soft loan of RM1.5 billion after Proton faced difficulties in paying suppliers. In return, the carmaker is expected to secure a strategic partnership with a foreign marque to manufacture cars for the domestic market and export.

Proton’s parent DRB-Hicom had said it would continue to hold a “substantial stake”, according to NAR.
Proton has two factories running at about one third of its 350,000-vehicle annual capacity. Its market share has eroded to just 13 per cent from a peak in 1993 when seven in every ten cars sold were Protons.