Tuesday, January 15, 2019

Second Group of Proton Vendors Ink Agreements with Overseas Vendors - Meanwhile Over 2,000 Proton X70 SUVs Already Delivered in Malaysia


Earlier today, a group of Proton vendors entered into collaboration agreements during a ceremony held at the Matrade Exhibition and Convention Centre (MECC). This is the second group of Proton vendors who have done so and like the first group of vendors, the agreements range in scope from technical agreements and joint ventures to 100% foreign direct investments by the overseas vendors into Malaysia. The new joint ventures is estimated tov bring an initial investment of RM47 million into country with the amount set to multiply over the years in tandem with increases in PROTON'S production volume. All of these collaborations will benefit the local production of the recently launched Proton X70 SUV. Some details of its delivery status is down below.



The signing ceremony was witnessed by YB Dr Ong Kian Ming (pictured above), the deputy minister of International Trade and Industry. The event was hosted by the senior members of PROTON, Dr Li Chunrong, Chief Executive Officer of PROTON, Dato’ Radzaif Mohamed, Deputy Chief Executive Officer of PROTON and other senior management members of PROTON and DRB-HICOM and attended by the vendors as well as their overseas counterparts. 

Joint venture arrangements like these bring investments to Malaysia and this is what is needed in any industry or economy. Aside from the investments in facilities and technology, the collaborations are expected to create approximately 450 new jobs in the automotive industry that range from assembly to design engineering that requires highly skilled workers. This will help to establish a credible supplier base capable of meeting the technology and higher quality standards required for the next generation of Proton cars which will beco-developed with Geely.

From left – Dato’ Radzaif Mohamed (Deputy Chief Executive Officer, PROTON), Datuk Dr Wan Mohamed Wan Embong (Chief Executive Officer of WSA Engineering Sdn Bhd), YB Dr Ong Kian Ming (Deputy Minister of International Trade & Industry), John Liu Dongming (Director of HSHP Auto Technology Sdn Bhd), Dr Li Chunrong (Chief Executive Officer, PROTON).

According to PROTON, the  vendors will supply parts to PROTON’s manufacturing facility in Tanjung Malim. This plant is currently undergoing plant expansion initiatives at a cost of RM1.2 billion and is expected to be completed by the second half of 2019. This plant will be producing the first completely-knocked-down (CKD) version of the Proton X70 and eventually producing all the other future co-developed models. 

Dr Li Chunrong, Chief Executive officer of PROTON said, “PROTON’s vendor development programme is gathering pace and the Company has worked hard on its matchmaking activities to find the best alliances that will benefit all vendors, the local economy and PROTON as well. We are convinced that by building partnerships with overseas counterparts, it will be possible for local vendors to reach a world standard for technology advancement and quality in a short time frame.”  

“If our vendors achieve their targets, it will enable them to compete internationally thus leading to the development of a vendor community that will allow the Malaysian automotive industry to compete on a global scale. The participation of these vendors is also vital to PROTON’s long-term goals, which ultimately is to lead the industry to develop world class competencies,” he added.

From left - Dato’ Radzaif Mohamed (Deputy Chief Executive Officer, PROTON), Li Pu (Vice President of ECARX), Mr Cheng Seng Fook (Director of Marketing, PROTON), YB Dr Ong Kian Ming (Deputy Minister of International Trade & Industry), Mohamed Rozaidi Md Sharif (Chief Executive Officer of Altel Communications Sdn Bhd), Dr Li Chunrong (Chief Executive Officer, PROTON).

Meanwhile..... Deliveries of Proton X70 have exceed 2,000 units.


This is five weeks after launch on 12 December 2018, bookings for the Proton X70 has exceeded 15,000 units. Of course, being fully imported models, PROTON will eventually clear off the waiting list in a few months. Those that are waiting be patient. PROTON's first SUV really looks good on the roads of Malaysia. It has visual presence, away from the launch venues and secret viewing sessions we automotive media fellas had to attend.

To date, over 2,000 units have been delivered in the five weeks following the official launch of the SUV and PROTON is working to accelerate the delivery rate in the coming months.


A very pleased Deputy Chief Executive Officer of PROTON, Dato’ Radzaif Mohamed, had this to say about the strong demand. 
He said, “PROTON is very thankful for the support Malaysians have shown for the Proton X70 and we are repaying their faith by trying to deliver units as quickly as we can. This is the start to 2019 the Company was looking for and we hope to keep the momentum going for our other activities throughout the year.” 

It is good to hear more positive news about PROTON these days. About time.



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