The story
Founded by Mahathir Mohamad on May 7, 1983.1
History
1980s
The concept of a national car was conceived in 1979 by then-Deputy Prime Minister of Malaysia, Dato' Seri Dr. Mahathir bin Mohamad, now Tun Dr. Mahathir Mohamad, with the goal of enhancing the Malaysian automotive industry. The National Car Project was approved by the Cabinet in 1982, leading to the participating interest of Proton on 7 May 1983, with Mitsubishi Corporation for the future of the company. At its creation, it was wholly owned by the government of Malaysia through Khazanah Nasional. It was headed by its founder, Dr. Mahathir. Proton approached Mitsubishi Motors between 1983 and 1984 and brokered a joint venture between both companies for the production of the first Malaysian car. The result of the collaboration was the Proton Saga, which launched in July 1985.
The Proton Saga was based on the second-generation 1983 Mitsubishi Lancer Fiore 4-door saloon, powered by a 1.3-liter Mitsubishi Orion 4G13 engine. The first Proton Saga to roll off the production line in Shah Alam is preserved in the National Museum (Malay: Muzium Negara) as a symbol of the beginning of the Malaysian automotive industry. Sales of the new Saga outstripped supply, and Proton did not meet the growing demand. By mid-1986, it captured a 64% majority domestic market share in the below 1600cc segment. Later in October 1987, a hatchback variant called the Proton Saga Aeroback was launched and had a more powerful 1.5L Mitsubishi 4G15 engine and a redesigned rear-end. Exports to Ireland began in 1988, and by March 1989, Proton had entered the United Kingdom car market with the Saga saloon and hatchback duo, where the Malaysian company set the record for the "Fastest Selling Make of New Car Ever to Enter the United Kingdom."
Proton's sales declined during the late 1980s as a result of the worldwide economic recession, and the lack of technical expertise in Proton's management. Kenji Iwabuchi, a former Mitsubishi Motors executive, was appointed as the managing director of Proton in 1988.
1990s
On 15 August 1992, the Proton Saga Iswara was launched. It shares the older Mitsubishi platform used in the original Proton Saga, but its exterior and interior styling are unique to Proton. The Saga Iswara was widely used as taxicabs in Malaysia during the 1990s and 2000s, and many continue in service.
On 21 May 1993 the Proton Wira was introduced. It is based on the fourth-generation 1991 Mitsubishi Lancer and was sold in a four-door saloon guise at launch. The Proton Wira Aeroback, a five-door hatchback variant featuring a Proton-designed rear-end joined the range in 1993. By 1996, the Wira saloon and hatchback shared six different engines, all of which were sourced from Mitsubishi Motors. The engines included the 4G13 1.3L and 4G15 1.5L carried over from the Proton Saga, the newer 4G92 1.6L, 4G93 SOHC and DOHC 1.8L and the 4D68 2.0L diesel. The Wira was the first Proton car to be produced in right-hand drive (RHD) and left-hand drive (LHD) configurations, and remains the only Proton car to have been available with a diesel engine.
Proton launched the three-door Proton Satria hatchback in 1994 and the two-door Proton Putra coupé in 1996, both of which are based on the Wira platform and powered by the same range of Mitsubishi engines offered in the Wira, except for the 2.0L diesel. The Proton Wira, Proton Satria and Proton Putra were exported and marketed across the European Union and Middle East during the 1990s. The Proton Perdana, a premium D-segment saloon, was launched in 1995. It is based on the seventh generation Mitsubishi Eterna, introduced in 1992, and was fitted with Mitsubishi's 4G63 2.0-litre straight-four engine. It was also offered with the superior 6A12 DOHC 2.0-liter V6 engine after 1999. The Perdana remains the only D-segment, V6-powered car to be commercially produced by Proton. A Citroën AX-based 1.1-litre five-door supermini called the Proton Tiara debuted in 1996. It was the result of a joint venture between Proton and PSA Peugeot Citroën, a collaboration which was later abandoned after the death of Proton's then CEO, Tan Sri Yahaya Ahmad in 1997.
On 30 October 1996, Proton acquired an 80% stake in the British company, Lotus Group International Limited, valued at £51 million. The controlling interest was purchased from A.C.B.N. Holdings S.A. of Luxembourg, a company controlled by Italian businessman Romano Artioli, then also the owner of Bugatti. By 2003, Proton's stake in Lotus was increased to 100%. Lotus has been involved in the development of suspension and handling elements of all Proton cars launched since 1996. The commercial success of the Proton Satria GTi, is due in part to Lotus' contributions.
2000s
The Proton Waja, the company's first indigenously designed model, was launched in August 2000. However, it still had a Mitsubishi 4G18 engine at launch as Proton's first in-house CamPro engine was unavailable. The Waja marked the end of Proton's extensive reliance on other car manufacturers for vehicle platforms and components. However, the model was only a moderate seller, being significantly outsold by Proton's own much older and slightly smaller Proton Wira. The Waja also marked the start of a decline in the local market-leading Proton marque which led to Perodua, the second Malaysian vehicle manufacturer, eventually capturing Proton's sales crown in 2006. In 2002, Proton introduced the Arena, a ute based on the Proton Wira platform and thus far the only Proton model to enjoy significantly more popularity in its export markets (specifically Australia) than domestically. The Proton Gen-2, a hatchback model, was launched in late 2004. It was the first Proton vehicle equipped with the new CamPro engine.
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The RM1.8 billion (US$580 million) Proton Tanjung Malim manufacturing plant in the Malaysian state of Perak commenced operation in November 2003. The new plant had been projected to open in August 1998, but it was deferred due to the 1997 Asian financial crisis. However, it was revived in 2001 and completed in late 2003 instead. The new 1,280 acre plant was also developed as part of the Proton City project, which would span 4,000 acres of land in Tanjung Malim and consist of residential, commercial, institutional, industrial and recreational areas. The plant has an annual production capacity of 150,000 vehicles, but could be expanded to 1 million units in the future. The Proton Tanjung Malim plant complements the original Proton plant in operation since 1985, located in Shah Alam, Selangor. Despite a combined production capacity of around 350,000 units, both plants are underutilised with just 52,235 and 114,645 units produced at the Tanjung Malim and Shah Alam plants in 2011 respectively.
In July 2002, Proton announced that a factory in Iran was going operational by next month to manufacture cars from knock-down kits in Borujerd in a partnership with Zagross Khodro.
In July 2004, Proton purchased a 57.57% stake in MV Agusta S.p.A. of Italy, valued at €70 million. Proton sold the marque to Gevi S.p.A. in December 2005 for €1. Gevi assumed the €139.44 million debt carried over from MV Agusta.
The company's sales grew around 37 percent from 2006 to 2011. The growth was supported by the launch of the Proton Persona in August 2007, the long-overdue replacement for the best-selling but aging Proton Wira saloon. The Persona was designed as an extended version of the 2004 Proton Gen-2 hatchback platform and shared most of its components and external appearance. The Persona sold 19,840 units in the first three months after its launch.
The second generation Proton Saga was launched in January 2008. Previously, the first generation Proton Saga had been Proton's first and most successful model, having had a long 23-year lifespan, the longest of all Proton models to date. The new Saga was booked around 23,000 times across the first two weeks of its launch. It has consistently ranked as Proton's best-selling vehicle domestically, placing 3rd overall in 2008, and 2nd between 2009 and 2012.
In April 2009, Proton introduced the Exora, Malaysia's first indigenous 7-seater MPV. The Exora was intended to compete with the Nissan Grand Livina and the smaller Toyota Avanza. For several years, it consistently positioned in the Top 10 best-selling vehicles in Malaysia.
2010s
On 6 August 2008, the Proton Saga and Proton Persona were seen doing road tests at the Greater Noida Expressway, hinting at the potential to export Proton automobiles to India. However, negotiations for Proton to establish an Indian branch did not materialize.
In December 2008, Proton resumed product collaboration with Mitsubishi Motors. Under the agreement, Proton gained the rights to rebadge the 2007 Mitsubishi Lancer to be sold exclusively in the Malaysian market. The result of the collaboration was the Proton Inspira, which launched in November 2010. It also marked a return to closer ties between Proton and Mitsubishi, the Japanese company which was instrumental in Proton's foundation in the 1980s. Proton showcased the EMAS concept hybrid city cars at the 2010 Geneva Motor Show. They were designed by Italdesign Giugiaro and related to the Lotus Ethos, a similar concept car from Proton's British subsidiary.
The turbocharged inline-four petrol engine from Proton was revealed at the 2010 Kuala Lumpur International Motor Show. Officially known as the 1.6L CamPro CFE, it is capable of producing power and torque figures of 138 bhp (103 kW) at 5,000 rpm and 205 N·m at 2,000–4,000 rpm respectively, comparable to a 2.0L naturally aspirated engine, while achieving better fuel efficiency and reduced greenhouse emissions.
In January 2012, Proton was acquired by DRB-HICOM, a Malaysian conglomerate in a transaction between Khazanah Nasional and DRB-HICOM which totalled RM1.2 billion. The Proton Prevé, the company's latest saloon car was unveiled on 16 April 2012. It became the first Proton car, and to an extent, the first Malaysian car to be awarded the full 5-star safety rating in the Australasian New Car Assessment Program (ANCAP) of Australia and New Zealand. In December 2012, Proton acquired all of Petronas' E01 engine technologies in addition to associated technology patents at a cost of RM 63 million. The deal encompassed a family of naturally aspirated and turbocharged 1.8, 2.0 and 2.2-litre engines to complement Proton's own CamPro 1.3L N/A, 1.6L N/A and 1.6L turbo engines.
In August 2013, Proton launched the Suprima S, the hatchback version of the Prevé saloon. It became the second 5-star ANCAP rated Proton and the first to offer extensive standard safety features in its domestic market. In December 2013, the second generation Proton Perdana was unveiled after a three-year gap in the nameplate's production. The new Perdana is a badge engineered eighth generation Honda Accord and is for exclusive sale to Malaysian civil servants and government officials.
The Proton Iriz was unveiled in September 2014 as the company's first B-segment 5-door hatchback. The new Iriz competes directly against the Perodua Myvi in its domestic market.
In January 2016, Proton unveiled their all-new four-cylinder GDI/TGDI and three-cylinder VVT engines. The new engines, of which there are six in total, are being developed in collaboration with Ricardo and Lotus Engineering, and are slated to enter production by late 2017.
Proton unveiled their new logo in February 2016, and appointed a new CEO and Deputy CEO in April. The government had also granted Proton a RM 1.5 billion soft loan in mid 2016. The loan came with a number of conditions, including a mandatory tie-up with a foreign automobile company in the near future. Several companies have expressed interest, including Suzuki, Škoda, Groupe PSA, Renault and Geely.
Proton introduced four new models in 2016. The new Perdana launched in June, followed by the new Persona in August, the new Saga in September, and the new Ertiga in November. Masazumi Ogawa was recruited as the director of quality control in Proton.
In May 2017, parent company DRB-HICOM announced plans to sell a 49.9% stake in Proton to Zhejiang Geely Automobile Holdings. Eventually, DRB-HICOM also sold 51% controlling-stake in Lotus to Geely, and the remaining 49% stake to Etika Automotive. The definitive agreement was in July 2017. Proton owned Lotus since 1996, and largely struggled to turn the fortunes of the sports car maker around. Nonetheless, in late 2016, Lotus announced their first operating profit in over 40 years. Their presence in Proton is said to not affect Japanese auto manufacturers due to being in the market for a very long time. Still, many of Proton's cars benefitted from the Lotus relationship, with the Satria GTi specifically mentioned by car reviewers as possessing good handling traits. Subsequent Proton some models received "Lotus Tuned" input.
Proton recruited Yoshiya Inamori as the vice president of manufacturing, who worked with the company in the 1980s.
In September 2017, DRB-HICOM announced changes to the board of Proton Holdings Berhad. Following the signing of a Definitive Agreement with China's Zhejiang Geely Holding Group Limited on 23 June 2017, the Chinese carmaker acquired 49.9% equity in Proton. The announcement in September saw a new board of directors put in place in Proton Holdings, Proton Edar (the local distribution arm) and Perusahaan Otomobil Nasional Sdn Bhd (PONSB).
Three nominees from Geely Holding joined the boards; Daniel Donghui Li, the Executive VP and CFO of Geely Holding; Dr Nathan Yuning, the Executive VP of International Business of Geely Holding, and Feng Qing Feng, the Group VP and CTO at HK-listed Geely Auto. DRB-HICOM are represented by Dato' Sri Syed Faisal Albar, who chairs the boards, and Amalanathan Thomas and Shaharul Farez Hassan. Both are part of the senior management team at DRB-HICOM. On the same day, Dr Li Chunrong joins PONSB as CEO. Dr Li is the third foreigner to head Proton. Between 1993 and 1997, the early years of Proton, two different Japanese nominees of their partners, Mitsubishi Motors Corporation, led the carmaker.
2020s
In April 2024, Proton announced the opening of a R&D centre at the Geely Automobile Research Institute at Hangzhou Bay in collaboration with Geely.
That August, Proton announced a partnership with ANSA Motors Limited in Trinidad and Tobago to market and retail their vehicles in the country. In December, Proton launched the e.MAS 7 with Prime Minister Anwar Ibrahim as the main guest of honor.
History
Proton first ventured into export markets in December 1986, a year and a half after the launch of the company's first car, the Saga. It was only sold in right-hand drive markets like New Zealand, the United Kingdom and Singapore because left-hand drive variants were not produced. Proton attempted to enter the American market in November 1988, but failed to meet strict US automotive regulations. However, the Proton Wira, which launched in 1993 became the company's first car to be produced in both left and right-hand drive configurations, paving the way for Proton's entry into Continental Europe in October 1994 and other markets in the Middle East and Latin America. The company's global sales network peaked between 1994 and the early 2000s, but has since dwindled to around 25 countries as of the 2010s. Proton has commissioned CKD plants in Iran, Indonesia, the Philippines, Vietnam, and China.
Proton began importing cars to the right-hand drive UK market from March 1989, and reached its 12-month sales target of 5,000 cars after just six months. The Proton brand was initially a huge success in the UK, but sales were declining sharply by 2010 and the brand was withdrawn in 2014.
Proton's presence in Singapore was handled by Cycle & Carriage from 1989 to September 2002 due to failures to make a turn around. It made a comeback in 2003 with Proton establishing a direct branch.
In the Philippines, Proton was formerly represented by Proton Pilipinas Corp from 1992 with an assembly plant in Alaminos, Pangasinan that manufactured the Proton Wira.
Proton exported 164,153 cars between December 1986 and December 1997. The United Kingdom is by far the company's most successful export market in terms of cumulative sales volume, and at one point Proton set the record for Fastest Selling Make of New Car Ever to Enter the United Kingdom. In 1992, the Saga was ranked among the Top 20 best-selling cars in the UK, outselling its primary competitors from Hyundai and SEAT. 100,000 Protons were sold in the UK by 1997.
Additionally, a 1999 survey by the United Kingdom Consumers' Association ranked Proton as among the most reliable and recommended in Britain. The response from 27,000 members of the association revealed that Proton was ranked third in terms of fewer breakdowns, faults and other mechanical problems, placing Proton behind Honda and Mazda, and ahead of Toyota and Ford. Furthermore, 80% of the surveyed Consumers' Association members said they would recommend Proton cars to friends and family, compared to 90% for Subaru, 79% for Toyota, 78% for Honda and Mitsubishi, 63% for Hyundai and 47% for Rover respectively. The 1999 award is Proton's second consecutive, having received similar appraisal in 1998.
However, sales in the UK have since collapsed, with just 208 Protons sold in 2012. Proton cars were once popular in Singapore, at one time the company's second-largest export destination despite its relatively small market size. Sales were also modest in Germany and Belgium during the late 90s, prior to Proton's withdrawal from Continental Europe. Kuwait was once a top Middle Eastern export destination for Proton cars in the late 90s and early 2000s, with an average market share of 8% or 1,000 units sold each year, ten times greater than any other Gulf Cooperation Council state. The Kuwaiti dealer, Bahrah Trading Company had focused on the niche fleet market, selling Proton Wiras to fast food delivery services and taxi operators.
By the first half of the 2010s, the Chinese market had become the largest contributor to Proton's export revenues. Although Proton cars sold in China carried different names and badges under the local Youngman EuropeStar brand, Proton nonetheless received royalties for the use of their platforms and Campro engines. Proton's six-year contract with Youngman expired in 2012, but the Zhejiang-based company continued to unofficially produce Proton's cars and engines up until early 2015. In February 2015, Proton announced that they would revive their joint venture with Fujian-based Goldstar, and would not renew their contract with Youngman.
Proton cars were also exported to several countries in Latin America, most notably Chile. Exports to Chile commenced in 1994, and almost 3,000 Protons were sold prior to the company's departure in 1998. However, Proton later expressed intentions of returning to Chile following the ratification of the Malaysia-Chile Free Trade Agreement in 2012. In July 2015, Proton signed a distributor agreement with Andes Motor, and the first official shipment of 50 left-hand drive Prevé units commenced on 1 March 2016. The Chilean launch of the Proton Prevé took place in May 2016, and formally marked Proton's return to Chile after an 18-year absence. It was reported that Proton left Chile by 2019 with 128 vehicle sold.
Proton announced that they closed Proton Motor Pars, established in August 2011, since it was dormant and no longer in the company's interest to revive it in any way.
On 12 July 2018, Proton resumes exports to the Middle East beginning with 440 units of Proton Gen•2 and 15 units of first-generation Proton Persona in Jordan to be distributed to Iraq as well as neighboring countries.
Proton had also entered Pakistan market in 2006 with a local automotive importing company named Royal Automobiles (Pvt) Ltd. Pakistan, the line-up from Proton Pakistan were the Proton Saga, Wira, Waja, Gen 2 and the Proton Impian, but unfortunate sale volume due to tough competition from veteran competitor brands and used imported cars in the market had to force them for early departure in 2010.
On 21 March 2019, Proton had announced their plans that they will re-enter Pakistan after their departure in 2010 with a new plant be built in Pakistan in collaboration with Alhaj Automotive.
Proton has already booked CBU versions of Proton X70 in Pakistan. The orders for CKD versions of X70 are also being booked by Proton in Pakistan which are expected to be delivered in Q3 of 2021 after the completion of the local assembly plant there. The Proton Saga is also expected to re-launch after 2006 in Pakistan in January 2021.
On 21 August 2020, it was announced that the Proton Saga will be exported to Kenya, most built under CKDs shipped to Simba Corp.
It was announced on 13 November 2020 that Proton vehicles will be sold in Nepal by Jagadamba Motors. The company will formally launch retail operations by January 2021. Proton previously had a presence in Nepal.
On 28 April 2022, an agreement was signed for Proton to re-enter the South African auto market. On 31 May 2022, Proton announced shipments of Proton X50s, X70s and Sagas in an effort to resume a presence in South Africa with CMH Group as the official distributor. In 2015, Proton left South Africa due to bad market conditions.
Proton announced in May 2023 that they have entered Mozambique in partnership with local automobile distributor Entreposto. In March 2024, Proton has a partnership with ANSA Motors to market/distribute Proton vehicles in Trinidad & Tobago with the X50 and X90 being marketed.
On 13 November 2024, Proton announced the opening of a CKD plant in Egypt owned by Ezz Elarab Elsewedy Automotive Factories (ESAF), the third one overseas after Kenya and Pakistan.
1980s and 1990s
Proton has a significant historical presence in motorsports. In the late 1980s, an alliance consisting of Proton, Malaysian oil and gas company Petronas, Mitsubishi Motors of Japan and distributor of Proton cars, Edaran Otomobil Nasional (EON) led to the formation of the Petronas EON Racing Team (PERT). The team focused primarily on rallying and has been in motorsports as early as 1987. PERT won the 1989 Shell Malaysia Rally with Proton Saga rally cars which were prepared by Mitsubishi's Ralliart division, featuring powerful 150 bhp engines as part of its rally specifications. PERT won several other international rallies including the 1991 Rally of Thailand, 1993 Dubai International Rally and the Rallye Ng Philipinas in 1995, 1996 and 1997 respectively.
2000s
Proton's presence in international motorsports peaked when the Petronas EON Racing Team won the 2002 Production World Rally Championship with veteran Malaysian rally driver Karamjit Singh in a Proton PERT, a rebadged Mitsubishi Lancer Evolution. The Proton-Karamjit duo also won the 2001, 2002 and 2004 Asia-Pacific Rally Championship titles.
In 2003, the Proton Motorsports Division, also known as "Race.Rally.Research., R3", was established. R3 assumed the responsibility of Proton's motorsports endeavours, which had been held by Ralliart of Mitsubishi Motors. The first model to benefit from R3 engineering was the Proton Satria R3 which launched in late 2004 with a limited run of 150 units.
From Wikipedia’s article on Proton Holdings, shared under CC BY-SA 4.0.3