In order to grow its volumes further, Proton will need to look for new markets outside Malaysia and while the number of export markets is small, the increasing popularity of the Malaysian brand means brighter prospects for the future. One such market which is showing great potential is South Africa, which Proton returned to this year after a 10-year absence.
For its return, Proton teamed up with CMH (Combined Motor Holdings) Group, an investment holding company which has been active in the motor business since 1987. Proton joins a long list of global brands that CMH represents, some of which are Ford, Chery, Honda, Toyota, Suzuki, Mahindra, Peugeot and Citroen.
Products suited to market
CMH has obviously been doing a great job building the brand presence and along with having two products suited for the market – the X50 and X70 SUVs – it has already imported 1,000 units of Proton vehicles. The large volume, reached just 2 months after Proton returned, is indicative of the strong demand.
“The quick take-up of our vehicles in South Africa is proof of the appeal of both Proton as a brand, and of our model range to car buyers there. We have a strong working relationship with CMH Group, and they have initiated many on-ground activities to give a taste of our current range to as many South Africans as possible,” said Steven Xu, Director of International Sales, Proton.
Expanding dealership network
The official brand and product relaunch took place on September 14, 2022 and since then, CMH has progressively expanded the distribution network to be present in more areas of the country known as the ‘Rainbow Nation’. It currently has 21 dealerships around the country which has a population of around 60.6 million.
For now, only the two SUVs are offered. The SUVs are ideal for South Africa which has urban areas as well as large open countryside. It’s not surprising then that car rental companies are choosing Protons, with one taking as many as 300 units.
Despite being a matured and competitive market, both Proton and CMH are optimistic about sales prospects in the country. With the strong sales performance thus far, they are targeting to double the sales volume in 2023.
“PROTON and CMH are confident of being able to grow sales exponentially in South Africa as the response we have received thus far has been very encouraging. We are committed to provide affordable luxury SUVs for South African car buyers, and the Proton X50 and Proton X70 have the right combination of features and value to compete with other brands,” said Mr. Xu.
“At the other end of the spectrum, we also feel that the Proton Saga – which will be introduced in South Africa in 2023 – will find its own niche with its combination of style, advanced features, and affordability,” he added.
Export sales continue growth
After doubling its volume in 2021, Proton’s export sales are continuing to grow in 2022. Up till the end of November, Proton exported a total 5,028 vehicles. Shipments are ongoing and so the final number for 2022 will be higher with December’s exports included.
Pakistan has been the biggest market this year, with 2,610 units delivered. South Africa is the second largest in terms of volume despite having only begun sales in the fourth quarter. Brunei Darussalam takes the third largest number of Proton vehicles.
The Saga remains the most exported model, while the X70 has nearly doubled its volume this year. The X50 is third but has grown its year-to-date by 3 times thus far.
“PROTON’s export volume continues to grow aggressively as we enter more new markets and establish a mixture of CBU and CKD strategies depending on market conditions. Export sales is one of the pillars for our sales growth and as such, we will strive to continue to grow aggressively over the coming years and bolster our position as the leading exporter of vehicles for Malaysia,” Mr. Xu said.
