TANJUNG MALIM: Proton Holdings Bhd (Proton) complete-knocked-down (CKD) sport utility vehicle (SUV) X70 model will be assembled at Proton’s new RM1.2 billion extended facility in Tanjung Malim, Perak.
Having launched the complete-built-up (CBU) unit on December 12, 2018, Proton’s best-selling C-segment premium SUV was previously imported from Zhejiang Geely Holding Group Co Ltd’s plant in China.
The national carmaker said it would work together with local and overseas vendors to ensure a supply chain for parts required to assemble the X70 locally.
Proton chairman Datuk Seri Syed Faisal Albar said the X70 has been instrumental in turning around the fortunes of the national carmaker, having sold over 26,000 units to date.
“Today marks a historical milestone for Proton as we take another step towards being a global automotive brand. By producing the X70 in Tanjung Malim, we have taken a quantum leap in our abilities as this is by far our most ambitious undertaking to date.
“This new plant will not only produce future products jointly developed with Geely but it will also be a centre for right-hand-drive production as we begin exports to countries all over world,” he said at the launch of the Proton X70 CKD production here today.
Syed Faisal said the X70 was the product that set Proton on its current path and it was a proud moment for the company to produce the X70 locally, matching the quality of the imported units from China.
Syed Faisal said Proton also targeted to export the X70 to Brunei, Thailand, Indonesia, Pakistan in the future.
“It is our hope that it (X70) will spark interest in these export markets as well in the future,” he added.
In preparation for the commencement of manufacturing activities, Proton worked closely with its local vendors to match them with other companies who were already supplying components for the SUV.
These efforts have resulted in seven new joint-ventures being formed as both local and foreign companies started partnerships based in Malaysia to share competencies and production resources.
Proton said other deals achieved by the effort include technical agreements and foreign direct investments, resulting in a total investment of RM263 million and the creation of 1,084 jobs as the vendor community gears up to create a pipeline of high technology components for the X70 and future models.
The initial local content target for the CKD X70 is 30 per cent and it will grow to 40 per cent before exports to Asean markets starts.
Syed Faisal said the new plant will also produce future products that are jointly-developed by Geely and Proton, citing that both entities and were constantly working to increase the number of locally sourced components.
“Ultimately, the long-term goal is to make Proton a global automotive brand and the right-hand drive market driving force for the Geely Automotive Group,” he said.
Proton is also on track to achieve 100,000 units of sales for 2019, while returning to second position in the local automotive market.
As of November this year, Proton delivered 89,476 units with a market share of about 16.2 per cent. The majority of the sales was contributed by the Proton Saga, having sold a total of 34,422 units.
Geely Auto Group president and chief executive officer Li Chunrong said Proton has undergone a tremendous transformation over the past two years.
“This experience has worked out very well for us at Geely Auto as we are happy to help Proton realise its global aspirations. We will continue to support Proton as it grows in the Malaysian market and in the wider Asean region and beyond,” he added.
He said Geely Group was committed to make Malaysia as the right-hand drive production hub as the country was the ‘bridge’, linking the Chinese automaker to expand its reach in Southeast Asia.