National carmarker Proton yesterday announced a substantial jump in second-quarter profits but warned of tough times ahead as the global slowdown hits the domestic auto market.

Proton said net profits for the three months rose to RM43.8 million, from RM3.5 million a year ago. Revenue reached RM1.84 billion, compared with RM1.31 billion a year ago.

proton persona sedan 160807 impressive The national auto firm, which has struggled to cope in a newly competitive environment, benefited from a good response to its two compact models, the Persona ( left ) and the Saga.

But it said it expects the Malaysian automotive industry environment to be increasingly challenging as the global financial crisis unfolds.

"On the international front, the impact of the global financial and economic crisis and the volatility of the foreign currency markets is expected to further deteriorate the business environment," it said, according to Dow Jones Newswires .

It said the Malaysian Automotive Association forecast slower demand for the fourth quarter of 2008, despite higher domestic passenger car sales in the nine months to September.

- AFP