SUBANG JAYA: Proton Holdings Bhd is gearing up to expand its completely knocked down (CKD) programme to new international markets, aiming to boost global sales and strengthen its presence abroad.
“There are a few destinations (to set up CKD plants). One of them will be in Central Asia and another in the Middle East. We are also studying, for instance, to have another CKD programme in Indonesia,” director of international sales Steven Xu Yuan told StarBiz.This is following the setting up of a US$35mil CKD plant in Egypt – Proton’s fifth plants involved in CKD and semi knocked down activities outside Malaysia.
The four plants are in Bangladesh, Pakistan, Kenya and Sri Lanka.
Proton chairman Tan Sri Syed Faisal Albar said the export markets remain a crucial pillar for Proton as it aims to become a sizable global market player since it cannot rely solely on the domestic market, which has a total industry volume of about 800,000 units annually.
“Proton is already present in 20 countries, including markets in Asia, the Middle East, and Africa. Today’s event is particularly significant for us as, over the past six years, Proton has exported approximately 3,200 completely built-up (CBU) units to Egypt, with the Proton Saga being the most popular model,” he said at an event to mark the start of CKD operations in Egypt as well as a flag off ceremony for the first CKD shipment to the country.
Syed Faisal said the CKD plant in Egypt would be Proton’s first for left-hand-drive models overseas and a regional assembly hub, targeting not only the Egyptian market but countries in the Middle East and North Africa.
According to Xu, Proton’s exports comprised about 3% of its total sales which came in at 101,489 units year-to-date. He aimed to raise Proton’s exports to 10,000 units next year, of which half is to come from its Egypt market
“Efforts are being made to increase that number by focusing on multiple core areas.
“For instance, Proton engages with its vendors to reduce component costs and while also inviting them to collaborate with companies in other countries to develop supply chains for our overseas production activities.
“This will pay dividends in the long term not only for the company and its vendors, but also for the development of the automotive industries in these foreign markets,” added Xu.
Proton deputy chief executive officer Roslan Abdullah told reporters that the Proton brand has been present in the Egyptian automotive market with its partner, Ezz Elarab since 2004.
“Overall, nearly 17,000 CBU units have been exported to the country and in 2024, it is forecast that over 1,400 units will be shipped there.
“With the local assembly targeted to start in December this year at an assembly plant owned by Ezz Elarab Elsewedy Automotive Factories, the targeted volume for 2025 is expected to grow to 5,000 units of the Proton Saga,” he said.
Meanwhile, the Investment, Trade and Industry Ministry (Miti) deputy secretary general (Industry) Datuk Hanafi Sakri said Proton’s CKD export to Egypt is estimated to generate a revenue of RM570mil or 16,000 units to its total export sales from the fourth quarter of this year to the end of 2026.He added that an additional RM20mil will be generated from spare parts sales to support customer service.
“Aside from the monetary aspect of trade, the establishment of a CKD plant to assemble Proton vehicles in Egypt will enable the transfer and growth of competencies in areas such as technology, best practices and expertise in the car automotive sector,” he said in his keynote address.
“I would like to affirm that Miti with our agency in Egypt, Malaysia External Trade Development Corp, in particular, and Malaysian Investment Development Authority will continue to help and facilitate Proton into Egypt.
“And I am confident that Proton will undertake many additional ventures in the export market, not only in Egypt, but all over the world. I hope that it will address our trade deficit in the automotive industry,” he added.
