WHAT’S wrong with the table on the right? It’s pretty simple. We’re not in it.
These are the top 20 motor-producing countries for 2015, according to statistics from Organisation Internationale des Constructeurs d’Automobiles (OICA), the body that compiles global production statistics.
Malaysia was ranked number 24th, with 614,671 motor vehicles produced that year, which is the latest complete figure.
It is below Indonesia, which came in 17th with a production of 1,098,780 motor vehicles, and Thailand, the “Detroit of the East”, at 12th with 1,915,420 vehicles.
Malaysia produced fewer motor vehicles than even Iran, the last country in the top 20, which produced 982,337 vehicles.
Malaysia’s motor industry is older than most countries in the region. Long before Proton was set up, Ford had set up operations in Singapore in 1926, which was then part of Malaya.
Of course, Proton started selling Malaysia’s first car, the Saga, in 1985. Demand was exceptionally strong as in 1986, it captured 47 per cent of the market share and became the leader for 20 years until Perodua finally overtook in 2005.
The original dream was that one day, Malaysia would be a major car-manufacturing country, and Proton would be leading the charge. So, what went wrong?
EXPORTS, EXPORTS, EXPORTS ...
Proton has acknowledged that the export markets are the key to the future of the carmaker.
While the Malaysian passenger car market is one of the biggest in Southeast Asia, Proton can’t sustain itself by selling its cars only to Malaysians. It may have been feasible in the 1980s and 1990s when there wasn’t much competition for Proton, but the situation isn’t so now.
At the launch of the Ertiga last year, Proton chief executive officer Datuk Ahmad Fuaad Kenali said Proton was reviewing its export market strategy.
“This year has been a challenging year for us so far in terms of competition. We are retreating somewhat, but not giving up on exports.
“Our team is exploring the globe to find an export market. Currently there are five or six markets where (our cars) are exported to. The numbers are not great,” he admitted.
Ahmad Fuad said new Proton cars, such as the new Saga, Persona and Iris, were good candidates for export.
“However, nothing has come to fruition yet,” he said.
Australia, which has often been described as the bridge to the Western world when it comes to exports, figured prominently in Proton’s plans.
So, how is the current batch of Proton cars doing in oversea markets?
Not too good. Total exports were about 5,000 cars in 2015, although Proton said it estimated that it would have exported 7,000 cars last year.
Australia also hasn’t turned out to be the promised land for our car manufacturer. Proton sales dropped 90 per cent last month as only two cars were sold, according to automotive website behindthewheel.com.au.
The situation doesn’t look rosy in England either, where Proton once sold quite well. The Proton UK Facebook page went quiet in late 2012.
In September 2013, cardealermagazine.co.uk reported that three Proton cars were sold.
CURRENT PERCEPTION
Reputation matters in the car industry as car reviewers are the first to introduce the public to new models.
They evaluate these cars and rank them accordingly. Some of these reviewers have large followings and are influential. Buyers believe them.
This makes sense, because if you think about it, the average Australian or British consumer knows nothing about a car that was made by a manufacturer in a country they may not be familiar with, and thousands of kilometres away.
They may just be as cynical as a Malaysian buyer evaluating a Chinese product. Naturally, they will turn to someone they trust.
In Australia, Proton is best known for cars like the GTi and Jumbuck (Arena).
The current batch of cars has been reviewed by a few motoring magazines.
The Preve is doing not too bad with www.caradvice.com.au, carsguide.com.au, and www.carshowroom.com.au giving a three over five rating for the sedan while Drive.com.au gave it a 2.5 over five rating, which isn’t that flattering.
The Suprima, too, got a three-star rating from www.carsguide.com.au and www.caradvice.com.au, and a 2.5-star rating from drive.com.au.
But, Proton still has a long way to go towards improving the brand’s reputation.
WHAT ARE THE CHALLENGES AHEAD?
Technology. That may be one of the greatest challenges that Proton will face in the future.
After years of slow technological advancement, the automotive industry is on the cusp of major transformation. Fuel efficiency and environmental impact are the current buzzwords in the industry, along with electric and hybrid.
The new generation powertrains that are being developed require massive investments in research and development, something which Proton is not well-positioned to do right now. The most viable alternative then is perhaps to find a technological partner. And that is what they are doing now.