KUALA LUMPUR: Proton Holdings Bhd’s new Perdana is vital to its revival but it needs to sell more cars in foreign markets to grow, said analysts.
The national carmaker must invest in the right countries providing the right product mix, sales and service network infrastructure and perhaps even hire-purchase partners, they added.
Frost & Sullivan Malaysia managing director Hazmi Yusof said the carmaker cannot survive in a small market.
“There is sizeable branding and promotion investment into these markets as well,” he told Business Times yesterday.
Proton has embarked on a comeback in Chile for example, with the recent opening of a 3S centre in Santiago signifying its market commitment.
MIDF Research head Zulkifli Hamzah said greater focus and a right strategy on the export market may help Proton achieve the scale that it needs.
“From the government’s perspective, export of Protons would add value to the trade sector as the product has already achieved a high degree of localisation,” he said.
Zulkifli said the need for Proton to have sound export plan is a fair condition to be attached to the funding support.
An industry player said a sound export plan would help tackle Proton’s root problem which is meeting the volume criteria in the lucrative B and C-segments.
“Their supply chain needs volume. If not, they will collapse,” he said, noting that Proton will soon launch the new Saga and Persona, both of which are Proton’s B and C segments respectively.
Proton sold 102,175 cars for a 17.3 per cent share of the local car market last year, according to the Malaysian Automotive Association.
Meanwhile, analysts said Proton’s reentry into D-segment with the new Perdana was a “small” but vital step to its revival.
The fourth generation Perdana was unveiled yesterday, marking Proton’s re-entry into the big sedan segment.
Hong Leong Investment Bank analyst Daniel Wong said the new Perdana could help boost Proton’s image and sales.
He, however, pointed that new car launches tend to excite consumers over a short period of time.
An analyst with a local investment bank said the Perdana, while unlikely to become a big volume seller, could be the start of a more exciting and perhaps game-changing models from Proton.
“What have been driving the sales for Proton have always been the B and C-segments. However, we could say that the Perdana marks the beginning of Proton’s revival,” he said.
He added that with the upcoming launch of the new Saga and Persona soon, Proton will be on track to its revival.