The COVID-19 pandemic affected business activity all over the world, impacting sales and delaying projects. But now that the situation is easing, many activities are quickly resuming and some projects that may have been suspended can now proceed. One of them is the local assembly of Protons in Pakistan at the factory which was under construction since March 2019. Recently, the first units of the Saga began to come off the production lines, setting a new milestone for Proton.
The Saga is the first Proton model to be assembled by Al-Haj Automotive, the exclusive distributor of Proton models in Pakistan, at their new greenfield factory in Karachi. The plant, built with an initial investment of US$20 million (about RM83.1 million), will create 2,000 direct employment opportunities in its first three years of operations. It is estimated that a further 20,000 indirect jobs will also be created as a result of the new plant being established.
25,000 units a year
The initial capacity of 25,000 units a year is expected to meet the potential sales volume of the market which was about 128,000 units in 2020 but higher at around 193,000 units the year before the pandemic affected the country. As with the case in Malaysia, local assembly means that the retail prices can be lower due to more favourable taxation, a critical element in Proton’s aim to grow exports in the future.
Speaking during the roll-out ceremony, Hilal Khan Alfridi, Chief Executive Officer of Al-Haj Automotive said: “The successful assembly of the Proton Saga in Pakistan is the culmination of the hard-work and untiring efforts of Proton, the entire Al-Haj team, its suppliers and vendors. Even with COVID-19 restrictions in place, we continued to push to build our new assembly plant and as such, we are confident it will set new industry standards and enable us to introduce more products that meet the international quality levels set by Proton.”
X70 assembly to follow
The X70 SUV is to be second model assembled in Pakistan. Launched in December 2020 as an imported CBU model, the X70 met with positive response. Together with the final batch, the total number exported to Pakistan is 602 units. The first locally-assembled units are expected to be available by the end of this year.
“Despite COVID-19 severely affecting our project timelines in Pakistan, demand for Proton models in the country remains high for both the Proton Saga and Proton X70 attracting a strong following. Al-Haj has received 2,500 orders for the Saga and over 2,000 orders have been placed for the X70, so we wish to thank the customers for their belief in our products and especially their patience and understanding over the delays in receiving their cars,” said Roslan Abdullah, CEO of Proton Edar.
“Now that the final shipment is on the way and local assembly has started for the Saga with the X70 to roll off the production line before the end of the year, we can finally work to catch up to market demand. This will allow Al-Haj Automotive and Proton to establish a strong market presence in the country to benefit future sales growth,” he added.
Sharing assembly expertise
With export sales being one of the pillars to achieving its long-term goals, Proton’s commitment to the Pakistan market extends beyond the shipment of CKD packs and consumable parts. It also includes human resources and there are currently 20 Proton staff specialising in various manufacturing related fields stationed in Karachi to assist in assembly operations.
“After 37 years of vehicle assembly experience, Proton has accumulated a wealth of in-house expertise that can be shared with our overseas partner. Having operated in various market conditions, we can quickly adapt to different scenarios, so we hope to be able to play a major role in ensuring the success of the brand in Pakistan,” Encik Roslan said.
With greater attention to overseas business, Proton aims to double export volumes in 2021
