KUALA LUMPUR: Proton Holdings Bhd's electric vehicle (EV) initiative remains firmly on track with the initial phase of introducing "smart" EV distribution within Malaysia in the fourth quarter of 2023, and throughout Asean.
Proton is leveraging onto Geely's knowledge and technology to develop its own EV range, with the new Proton EV model to be launched as early as 2025.
"Proton is also collaborating with Gentari for EV development, mobility, and the ecosystem of new energy," Hong Leong Investment Bank Bhd (HLIB) Research said in a note.
Meanwhile, the research firm stated that Proton is expected to achieve its fifth consecutive year of sales growth in 2023, with sales of 116,800 units in the first eight months of 2023 (8M23), representing a 14.1 per cent year-on-year (YoY) increase.
For 2023, the company previously set a sales target of 150,000 units, indicating a growth of 6.1 per cent YoY, supported by strong demand for existing models as well as the newly launched X90 (May 2023) and the upcoming S70 C-segment sedan model by year-end.
"Note that Proton managed to turn a profit of RM74 million in the financial year 2021 (FY21) and continued to record a stronger profit of RM200 million in FY22," it added.
Additionally, Proton has set a sales target of 310,000 units in 2030 and 500,000 units in 2035.
HLIB Research said if these targets are achieved, Proton would secure the top sales position in Malaysia and be in the top three in Asean.
"We expect Proton to launch one new model per year for the next six years, with a total investment of RM6 billion, including allocations for product development, production efficiency, and capacity expansion.
"Proton is also venturing into the next generation of vehicle CASE technologies," it added.
Since the restructuring exercise in 2017, Proton has significantly improved its product quality to below 700 points, a substantial improvement from 6,388 points in 2018, despite the increase in Proton car sales.
"Overall productivity and cost-efficiency ratios have also improved significantly over the years.
"We expect continuous improvement in product quality and cost efficiency as Proton consolidates its production in Tanjung Malim from Shah Alam by 2026 with investments in better-equipped production plants," it said.