1
Table of Contents Page Number
1. Introduction 2
2. Discussion 3-14
3. Conclusion 15
4. References 16-18
2
Introduction
PROTON was formed in 1983 after the former Prime Minister, Tun Dr Mahathir
Mohamad introduced a new vision; to create and initialize a national car. Malaysia’s very first
national car was introduced in 1985 when the Proton Saga started to begin its new adventure
in the automotive industry after 28 years of independence. It is the pride of Malaysian at that
time and until today as it continues to improve its technology transfer, collaborations and not
to forget, strategic partnerships with other giant companies such as Geely, from China. In
highlight of its continuous improvement, PROTON strives to compete internationally among
other famous and stable brands such as Honda and Toyota (Lim, 2019) by exporting the cars
to other foreign countries such as Brunei, Jordan, Iraq and Egypt (Malaysia Kini, 2019).
According to the PROTON press release on 2nd of November 2020, it was reported
that the sales in October 2020 grew by 20 percent over October 2019 but contracted by 4.6
percent compared to September sales. The total sales for the year 2020 has reportedly increased
6.2 percent compared to last year and that is equivalent to approximately 21.3 percent of market
share. Face lifted Proton Persona models are leading in sales for the sedan market with 2,360
units sold while Proton X70 sales is leading in the SUV segment with 2,216 units sold for the
month.
3
Discussion
1. Discuss and argue why the introduction of X70 in Malaysian automotive market
led to the success of the Proton despite the economic lockdown imposed recently.
Upon its introduction, Proton X70 has been the hottest topic discussed among
Malaysian. From its external look, to engine capacity, to the impressive interior design
and up until the affordable prices, Malaysian have been observing, analysing and
comparing between this proudly presented national car with international brands such
as Honda CR-V and Subaru XV. The prototype has been discussed ever since PROTON
begin to ink a partner-ship agreement with Chinese conglomerate, Geely and it is also
a study to see whether the publics are ready to buy PROTON again after years of
decreasing number of sales (Lee, 2019).
One of the major factors that influence the public to choose Proton X70 over Honda
CR-V or Mazda CX-5 is the price. Relatively low and affordable price does not make
people think twice and assisted one to make decisions quickly and accurately is Proton
X70 strength. With a starting price of RM 94,800 for standard package to RM 122,800
for premium package, Proton X70 offers up to 33 percent and 37 percent lower price
compared to Honda CR-V and Mazda CX-5 respectively.
Other than that, Proton X70 exterior and interior design has captured the audiences’
attention. The front end makes a striking first impression for its sharp headlights and
sportier bumper design that gives a little bit of Range Rover Evoque vibes that have
made people attracted to its near-luxury car looks. The impressive interior design that
was built in a very comfortable and luxury looking Nappa leather and neat touches like
● Aims to expand presence in ASEAN,
Middle East and increase sales in
Egypt
● Collaborates with Pakistan distributor,
Alhaj Automotive to set up assembly
plant in Karachi
Future strategy
● Set up assembly plant in China to
market its car
Increase exports to left-handed markets
(UK, Europe, Australia)
models
Future strategy
• Possibility of Proton
assembling Volvo and other
Geely’s vehicles in Tanjung
Malim plant
Existing products/services
New products/services
Existing
Market Penetration Strategy
Current strategy
● Tax break savings up to RM 7,000
● Customers can book Proton cars from
as low as RM9.99
● Low interest rate for Proton Cars
Financing for fresh graduates
● Proton Cares Programme that includes
free insurance coverage for frontliners
● Presented face shields to medical
frontliners
Product Development
Strategy
Current strategy
● Proton’s strategic partnership
with Geely gives Proton
access to Geely’s resources,
technology, suppliers and
brand
● Invests extensively in R&D
by taking a huge loan from
China Construction Bank
