By Chan Quan Min
Proton’s admission to producing substandard cars for the local market comes on the back of a decision to begin to introduce all its new models to international standards. Good decision, but is this not a tad late?
It is something of an open secret that our national carmaker Proton produces two separate versions of its range of vehicles; one to match up to more stringent standards in export markets and another to flog off in its home market where regulations are understood to be more lax.
Tiger read with glee yesterday Proton’s admission that it had only just begun to consider introducing new local models that meet global standards.
So it is true then. Malaysians have been sold substandard cars by Proton, at least when it comes to internationally recognised standards. Tiger is sure they meet all local standards, should this be of any importance.
Proton will reportedly produce new car models that conform to international standards within the first six months of next year, according to a Business Times article yesterday.
At long last, Malaysians can be proud owners of a national car that is built to international standards. Twenty years is a long time to wait, but finally the day has come.
‘Commonisation’ of Proton models between local and export markets has been talked about for years now.
The recent launch of the Proton Suprima S set things on the right course with the inclusion of safety features that meet international standards
In Tiger’s eyes, Proton should be commended for the company’s noble gesture to make like for like its export and local models. Except, the intention appears to be more for export growth rather than the safety of Malaysian drivers.
“If we want to remain competitive, we have to come out with new models (with international standards),” Proton deputy CEO Lukman Ibrahim was quoted as saying by Business Times during the launch of the Proton Persona SV.
“When we produce cars that are of international (standards), it does not take too long to launch these cars in the international market.
Lukman Ibrahim
“This was proven with the launch of Proton Suprima S in September and in Indonesia, Australia, Brunei and Thailand the following month,” added Lukman.
Tiger wonders why it has taken Proton, a company that happens to use a tiger as its emblem, so very long to realise that producing models to two specifications is just a hassle, not to mention, hampers the carmakers export ambitions.
Now that Proton has finally wised up, here is to hoping exports can increase from their current pathetic levels.
Last year, Proton exported approximately 10,000 vehicles, against sales of approximately 150,000 vehicles locally.
Under Proton’s five-year business plan, the national carmaker plans to sell 500,000 vehicles per annum by 2018 inclusive of 150,000 export units.
More than before, Proton has to depend on export markets to achieve economies of scale. At current production volumes both its Shah Alam and Tanjung Malim plans are underutilised.
Proton officials earlier this year mentioned domestic sales of anything above 350,000 per annum would be a challenge given the fast-saturating domestic market.
All this brings us full circle. If Proton is almost never going to meet the necessary sales volume to achieve economies of scale in production, given our limited domestic market, then this means it might never become economically viable compared to its international peers.
Until then, Proton is just biding its time to an eventual collapse or inevitable equity partnership with an international partner with scale and expertise.
Tiger says this with conviction. Twenty years is a long time for an experiment. A decision needs to be made. Cut losses now or bring in real reforms for real results.
GRRRRR!
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