Perusahaan Otomobil Nasional Sdn Bhd (PROTON) is Malaysia’s first national carmaker, established with the aim of accelerating the country’s industrialization and creating a self-reliant automotive industry. The company’s journey from its inception to becoming a significant player in the global automotive market is a testament to Malaysia’s industrial capabilities and strategic vision.
PROTON was established on May 7, 1983, as part of an ambitious industrialization plan by the Malaysian government, spearheaded by then-Prime Minister Tun Dr. Mahathir Mohamad. The establishment of PROTON was seen as a key initiative to develop a domestic automotive industry and reduce the country’s reliance on imported vehicles.
PROTON’s first model, the Proton Saga, was launched on July 9, 1985. The car, which was based on the Mitsubishi Lancer Fiore, marked a significant milestone for Malaysia, symbolizing the country’s entry into the automotive industry. The Proton Saga quickly became popular due to its affordability and reliability, solidifying PROTON’s presence in the domestic market.
Throughout the 1990s, PROTON expanded its product lineup with several new models, including the Proton Wira, Proton Satria, and Proton Perdana. The company also started exporting vehicles, initially to the United Kingdom and then to other international markets. In 1996, PROTON acquired a majority stake in the British sports car manufacturer Lotus, which enhanced its engineering capabilities and brand prestige.
The early 2000s presented challenges for PROTON, including increased competition from foreign car manufacturers and internal management issues. In response, PROTON underwent significant restructuring, focusing on improving product quality, expanding its model range, and enhancing its operational efficiency. The introduction of models like the Proton Gen-2 and Proton Persona aimed to revive the brand’s competitiveness.
In 2012, PROTON became a subsidiary of DRB-HICOM, a diversified conglomerate. This period saw renewed efforts to enhance the company’s technological capabilities and market presence. A pivotal moment came in 2017 when China’s Zhejiang Geely Holding Group acquired a 49.9% stake in PROTON. This strategic partnership provided PROTON access to Geely’s advanced technologies and global supply chains, leading to the development of new models such as the Proton X90, Proton X70 and Proton S70, which have been well-received in both domestic and international markets.
PROTON’s market performance has seen significant fluctuations over the years. While it dominated the Malaysian automotive market in its early years, the entry of international competitors eroded its market share. However, recent strategic initiatives and product launches have rejuvenated the brand, resulting in improved sales and market presence.
The partnership with Geely has been particularly beneficial for PROTON in terms of product innovation. The introduction of the Proton X70, the company’s first SUV, and the Proton X50, a smaller SUV, showcased the brand’s commitment to integrating modern technology and high-quality standards. These models feature advanced safety systems, connectivity features, and refined designs, aligning with global automotive trends.
PROTON has made significant strides in improving the quality and reliability of its vehicles. The collaboration with Geely has facilitated the adoption of better manufacturing practices and quality control measures. Customer satisfaction levels have improved as a result, with newer models receiving positive reviews for their performance, safety, and value for money.
PROTON has played a crucial role in Malaysia’s industrialization and economic development. The company has contributed to the growth of the local automotive industry, created numerous job opportunities, and supported the development of a robust automotive supply chain. Moreover, PROTON’s export activities have helped in earning foreign exchange and enhancing Malaysia’s industrial reputation globally.
Looking ahead, PROTON aims to strengthen its position in the global automotive market through continuous innovation, strategic partnerships, and market expansion. The focus will likely be on developing electric and hybrid vehicles, in line with global environmental trends, and further enhancing the technological sophistication of its product lineup.
From its humble beginnings in 1983, PROTON has evolved into a significant automotive player, overcoming numerous challenges along the way. Its journey reflects Malaysia’s industrial ambitions and resilience. With strategic partnerships and a renewed focus on innovation and quality, PROTON is well-positioned to drive forward into the future, contributing to the global automotive landscape while continuing to support Malaysia’s economic growth.
