The Malaysian Insider

Business

Proton aims to crack India market

CHENNAI, Nov 4 — Proton Holdings Bhd is committed to enter the Indian car market and optimistic it can conclude partnership talks with the potential partner by early next year or earlier.

“We don’t want to set a time but we hope by early next year everything can be resolved, and if that is the case, manufacturing can start by 2011,” Proton’s managing director, Datuk Syed Zainal Abidin Syed Mohamed Tahir, told Bernama early this week.

He said Proton was confident its ongoing discussion could enter the next stage and there was no doubt of it entering the Indian car market. Syed Zainal said Proton had been sending its cars to India for testing on Indian roads for the last one-and-half years.

“So we have a lot of feedback in terms of what needs to be done to our cars. The question is to find the right partner to get the facility and the manufacturing running,” he said.

He was in India as part of the trade and investment mission headed by Minister of International Trade and Industry (Miti) Datuk Mustapa Mohamed.

“Of course, in light of the current economic crisis, we are re-looking our strategy,” he said, adding that Proton has been talking to a few parties, including Hero group.

Syed Zainal said it was a question of time and finding the right business model.

“It is just that now, with the current situation, we need to reassess our strategy and hopefully we will be able to conclude something because India is a very important market,” he said.

He said Proton was looking for a partner with high experience in the Indian motor vehicle industry not only in manufacturing but also sales and distribution.

Syed Zainal said Proton would not bring completely built-up (CBU) units into India. He said it would bring in completely knock down (CKD) units with high local contents as the component industry in India was well-developed.

“Our business model in India is not CBU. I don’t think we can survive long term on CBU as it will be costly,” he said.

Syed Zainal said Proton was looking for a partner with manufacturing and localisation expertise as it did not have it in India.

“So we are looking for partner that can support us and help us on that,” he said.

He said Proton was also looking at an existing distribution network.

“India is a big market. I don’t think it is worthwhile, and more difficult, to establish our own distribution network. It is more logical to tie up with a company that already has one,” he said. — Bernama

Comments (2)

written by AgreeToDisagree, November 05, 2009

Tata Nano costs around RM8000. Proton Saga cost around RM15000 when it started. Now almost RM40000. Verdict? On a fair and even ground, Proton is finished. Without the AP system, Proton is also finished. The cheapest car will dominate the market, so forget it and don't even waste time competing, unless your intention is to give more money to cronies in India. By which time AFTA is in place, BN may not even be around any more, simply because it will never grant :

1) End of Inequality affecting Malaysians via law and constitution
2) End of Malay Reserve Land
3) End of Special Privileges
4) End of NEP
5) End of 7% housing discount / bumiputra housing quota etc.
6) Amend ISA to a form acceptable to the Human Rights Charter
7) Implement the IPCMC.
8) End of the 12.5% of issued stock in the equities markets
9) Effect leeway and allowances such as voice prayer for minority dominant areas (so that Singapore can be re-assimilated)

written by leap frog, November 05, 2009

Haven't we heard this war cry before !
Did you remember the time when Proton proudly announced that they will attack the Middle East market, the British market, the Aussie market and the China market to name a few gaint leaps taken by our crutch assisted national car company.
Can't even gain the confidence of the local market and they want to penetrate foreign markets!
Same old , same old story will be played back again and again. . .