Speaking to FMT, MAI chief executive officer Madani Sahari said Proton’s progress to date could be traced back to its transformation plan last year, which included forming a partnership with a foreign strategic partner and revamping its business model.
He said Proton had responded immediately through the launch of four new models within the same year, adding that the increase in sales compared to 2016 was a “hopeful indicator” of the company’s future.
Madani was commenting on reports that Proton had recorded a 12.5% increase in sales year-to-date, with 56,297 units sold compared with 50,091 units recorded in the same period last year.
The increase in business for Proton was mostly reflected in the sales of its new Saga, the company’s entry model sedan, as well as the new award-winning Persona.
“With its partnership with China’s Zhejiang Geely Holdings Group Co Ltd, Proton has added a new dimension to its brand identity.
“Geely’s experience, market access and technology, coupled with Proton’s own research and development capabilities and manufacturing base, allows for a more conducive ecosystem for both parties,” Madani said.
He said he hoped Proton would leverage on its recent results to achieve better fortunes.
Socio-Economic Research Centre executive director Lee Heng Guie agreed that the increase in sales was an encouraging sign.
“But the journey ahead remains challenging, given the competitive automobile market in terms of performance and after-sales services.”
In the past, Proton acknowledged that many of its customers’ complaints were related to poor after-sales service.
Proton’s new CEO Li Chunrong has made improving customer satisfaction his main priority as he embarks on a mission to turn the national car company around.
“Investors set high expectations on the Geely partnership in rejuvenating the fortunes of Proton,” Lee added.
He said if Proton was to succeed, its management, operations, marketing and delivery services had to undergo a “radical transformation”.
Meanwhile, Malaysian Automotive Association (MAA) president Aishah Ahmad said Proton needed to be more aggressive with its marketing, as it was a very competitive market, especially where pricing was concerned.
“I think Proton has good products, though in the past it’s had some issues. The increase in sales is a good sign that there is hope for the future,” she told FMT.
She added that Proton’s partnership with Geely was bound to bring in new models and customers, and that Proton now had to maintain its efforts in building brand confidence.
Proton once dominated the Malaysian automotive market, but has seen a downturn in fortunes in recent years.
In 2001, Proton, which benefited from decades of government support and bailouts since its inception in 1983, had a market share of 53%. Last year, its market share stood at 14%.
But following its strategic partnership with Geely, which owns the Volvo brand, Proton has set its sights on becoming one of the top three brands in Asean.
Geely owns a 49.9% stake in Proton after it inked a RM460.3 million deal with Proton’s parent company, DRB-Hicom Bhd, earlier this year.
Under the agreement, Geely will lend expertise in the areas of production, manufacturing, operations and marketing.
New chief wants to make Proton number one in Malaysia, Asean