We will survive, says Proton on competition
Aidila RazakPublished: Jan 20, 2014 6:24 PM | Updated: Jan 20, 2014 6:28 PM
National carmaker Proton insists that it will be able to survive an onslaught of competition expected with the opening up of manufacturing licences to all carmakers in the world.
National carmaker Proton insists that it will be able to survive an onslaught of competition expected with the opening up of manufacturing licences to all carmakers in the world.
“Proton will continue to survive... of course Proton is not for sale! There is nothing to fend off.
“We have put in structural improvements... on the quality, cost and delivery and it is this basis that Proton has been attending to for the last 1.5 years.
“Proton will continue to be very relevant in the automobile industry together with Perodua. The two national automotive companies will play a vibrant role and be the focal point to improve and enhance under the National Automotive Policy (NAP),” Proton executive chairperson Mohd Khamil Jamil told reporters.
Commenting after the NAP 2014-2020 launch at Matrade today, he said that Proton car prices have been coming down by as much as 12 percent with “value engineering”.
“This comes in improved safety standards and offerings to customers while not compromising on quality. That is value for money and what I mean by affordable cars,” he said.
He added that the RM2 billion in grants and soft loans offered by the government under the NAP to assist the development of energy efficient vehicles will also assist Proton in providing better value cars.
In launching the NAP, International Trade and Industry Minister Mustapa Mohamad said that Proton started with a government grant and had been protected until 2014, where any changes in car prices will need to be approved by the government so as to not affect Proton.
However, by issuing manufacturing licences to any carmaker which produces energy-efficient cars, Proton will see stiffer competition.
By 2018, he said, greater competition will see car prices go down by up to 30 percent on nominal rates.
“However, inflation for Malaysia year on year is only one or two percent, so it does not affect the reduction in prices,” he told media after the launch.
To a question, he said that Malaysia’s push to be an energy-efficient vehicle hub could also be complemented with the introduction of efficient fuel like the Euro 4.
However, this is still being studied with the outcome of the study to be known “in the next few months”.
‘Global standards have been harmonised’
Also present was Miti agency Malaysia Automotive Institute chief executive officer Madani Sahari, who said that compliance to the United National safety regulations by 2016 will not have an impact on car costs.
He said that this is because global standards have been harmonised, and technologies are now adopted and developed to these specifications.
Meanwhile, Malaysian Automotive Association president Aishah Ahmad welcomed the NAP as “it is the first time Malaysia is saying that it is opening up”.
She said customised incentives, be it in reduction in excise taxes in accordance to investment value or other offerings to attract energy-efficient vehicle manufacturing in Malaysia also puts the country on an equal footing with Thailand and Indonesia.
“Proton will continue to survive... of course Proton is not for sale! There is nothing to fend off.
“We have put in structural improvements... on the quality, cost and delivery and it is this basis that Proton has been attending to for the last 1.5 years.
“Proton will continue to be very relevant in the automobile industry together with Perodua. The two national automotive companies will play a vibrant role and be the focal point to improve and enhance under the National Automotive Policy (NAP),” Proton executive chairperson Mohd Khamil Jamil told reporters.
Commenting after the NAP 2014-2020 launch at Matrade today, he said that Proton car prices have been coming down by as much as 12 percent with “value engineering”.
“This comes in improved safety standards and offerings to customers while not compromising on quality. That is value for money and what I mean by affordable cars,” he said.
He added that the RM2 billion in grants and soft loans offered by the government under the NAP to assist the development of energy efficient vehicles will also assist Proton in providing better value cars.
In launching the NAP, International Trade and Industry Minister Mustapa Mohamad said that Proton started with a government grant and had been protected until 2014, where any changes in car prices will need to be approved by the government so as to not affect Proton.
However, by issuing manufacturing licences to any carmaker which produces energy-efficient cars, Proton will see stiffer competition.
By 2018, he said, greater competition will see car prices go down by up to 30 percent on nominal rates.
“However, inflation for Malaysia year on year is only one or two percent, so it does not affect the reduction in prices,” he told media after the launch.
To a question, he said that Malaysia’s push to be an energy-efficient vehicle hub could also be complemented with the introduction of efficient fuel like the Euro 4.
However, this is still being studied with the outcome of the study to be known “in the next few months”.
‘Global standards have been harmonised’
Also present was Miti agency Malaysia Automotive Institute chief executive officer Madani Sahari, who said that compliance to the United National safety regulations by 2016 will not have an impact on car costs.
He said that this is because global standards have been harmonised, and technologies are now adopted and developed to these specifications.
Meanwhile, Malaysian Automotive Association president Aishah Ahmad welcomed the NAP as “it is the first time Malaysia is saying that it is opening up”.
She said customised incentives, be it in reduction in excise taxes in accordance to investment value or other offerings to attract energy-efficient vehicle manufacturing in Malaysia also puts the country on an equal footing with Thailand and Indonesia.
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