The current ‘full lockdown’ imposed by the stricter Movement Control Order is expected to affect the retail operations of many businesses. In the auto sector, showrooms must remain closed although aftersales services at service centres are allowed to operate. This will certainly have an effect on the Total Industry Volume (TIV) again, as it did a year ago when sales plummeted to nearly zero.
Best export performance since 2013
Proton cannot escape such effects but it is counting on export sales to help offset the downturn. Its International Sales Division has been recording increased numbers, with May 2021 being the best export sales month since March 2013. A total of 669 vehicles was sent overseas and up to the end of May, the export volume is 174% of the target set and only 6% behind what was achieved for the whole of 2020.
Proton’s growth in export sales is due to growing demand in several key markets, some new and some having sold Protons for decades. For example, Pakistan is a new market for the company and in the first 5 months of 2021, it was by far the best performer.
Brunei, which started selling Proton vehicles as far back as 1987, was the third biggest export market by volume this year and in May, importers PAD Motors had the best sales month in the company’s history. In Egypt too, Alpha Ezz El-Arab, the importer and distributor for Proton cars, ordered and received 350 units this year, making it Proton’s second largest export market.
More exports in 2021
“At the beginning of the year, our plan for 2021 was to aggressively grow Proton’s export sales volume. Despite international restrictions and the rising cost of shipping caused by the coronavirus pandemic, we were confident of being able to meet our goals due to the sales plans of our importers and the appeal of our products. After 5 months, however, we are close to doubling the volume target set, which hopefully is a sign for more success in 2021,” said Steven Xu, Director of International Sales.
Although the present situation has slowed down new orders in the domestic market, demand has been high, and Proton’s factory is ready to meet this demand. For export markets, its longer term goals will be met by having some models assembled in certain countries. It has begun local assembly for the Saga in Kenya, and the next market to assemble cars locally will be Pakistan.
“If everything goes to plan our partner in Pakistan, Al-Haj Automotive will begin assembly operations with the Proton Saga by the end of July or early August at its new plant in Karachi. The Proton X70 will be added to their production line later, and we have high hopes this development will spur sales growth in the South Asian region,” said Mr. Xu.
ASEAN sales vital for future growth
While growing sales in export markets is a reassuring sign of wider acceptance of the Proton brand and its products, the key to achieving the company’s long-term goals remains sales growth in ASEAN. The region is hotly contested with many global brands having invested in production facilities that supply local and export markets as well as competition from local manufacturers.
Currently, Proton’s presence in ASEAN is limited to Brunei but the company has plans to return to the two biggest markets in the region – Thailand and Indonesia, in the very near future. “For Proton to be the third best-selling brand in ASEAN, we need to have a major presence in Thailand and Indonesia. As the biggest automotive markets in the region, they offer enormous volume potential, but the level of competition is also very high. For both countries, we have been busy recruiting partners to build a network that ensures a viable business model and in the short term, our target is to return to Thailand in 2022,” Mr. Xu added.
With greater attention to overseas business, Proton aims to double export volumes in 2021
