Proton will explore all avenues to grow the business, including tapping more export markets and developing new models via partnerships with foreign carmakers.Carmaker Proton Holdings Bhd is keen to develop long-term strategic partnerships with foreign carmakers, but essentially on matters concerning sharing of platform to produce a car.
Chairman Datuk Nadzmi Mohd Salleh said Proton aspires to be in the carmaking business for the long haul.
It will explore all avenues to grow the business, including tapping more export markets and developing new models via collaboration with key partners in foreign countries.
"For overseas markets, we are looking at collaborating with manufacturers, assemblers or big auto players to make the cars in the respective markets, such as in Asean, China, India, the Middle East and Africa.
"We do not want to invest in assembly plants as this will increase our operation costs," Nadzmi told Business Times in an interview in Jakarta, Indonesia.
"But the costs involved in producing a car on foreign platform must be competitive for Proton to make its profits. The costs must be carefully planned to meet our clear objectives," he said.
Nadzmi said that Proton will focus on high-growth regional markets like Asean, China, India, the Middle East and North Africa for its exports to benefit from the economies of scale.
Proton has already formed a strategic partnership with Detroit Electric Holdings Ltd to produce and market a full line of innovative Pure Electric vehicles in the US, the UK and Europe from next year.
Detroit Electric will integrate its patented electric-drive system into the vehicles.
Under the agreement, it will license two Proton vehicle platforms and contract the company to assemble the electric vehicles, which will be marketed under the Detroit Electric brand.
Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the company needs to develop more viable products, such as the Exora multi-purpose vehicle (MPV), to be profitable.
The cost to make the MPV is lower than for its other car models, he said.
Syed Zainal Abidin said the profit margin from the Exora was 15-20 per cent higher than for the rest of the current models.
"Proton has to be innovative in its approaches, not just in one area but in all aspects of operation," Syed Zainal Abidin said. - By Sharen Kaur
