Proton to extend its reach outside Malaysia after collaboration with Geely

MANILA: Malaysian carmaker Proton has finally decided to expand its market reach outside the Malaysian borders and produce a wider range of high-end cars in the coming future. This was planned after the company shook hands with Geely Auto.

As per the agreement, Proton will utilize the core technologies from Geely to customize their current automotive portfolio. In addition to using the latest technology from Geely, the strategic agreement will also allow Proton to expand its market share in other Southeast Asian countries and in the worldwide markets.

There were many well know personnel present in the ceremonial signing including Geely’s President An Conghui, DRB-HICOM’s MD Dato Sri Syed Faisal Abar and Geely’s Vice president and CFO Daniel Donghui Li. Also, Malaysian Prime Minister Dr.Mahathir Bin Mohammed who is recently elected was also present during the ceremony.

These latest strategies are followed by Geely’s 49.9% shares in Proton and Lotus from DRB-HICOM back in July 2017. Geely has also owned the Swedish automaking brand, Volvo since 2010.
President An Chonghui also informed that Lynk and Co models, co-produced with Volvo last year will grow in 2019 as the company was able to resolve an issue related to the engine shortages back in January.

Out of the 571,577 Vehicles produced by Volvo back in 2017, only 14.2% of them could be sold in the US market. This meant a loss of 1.5% in the sales volume from the previous year. 21% of the vehicles were produced in Geely’s Chinese plants.

Geely Holding has now become the third-largest car making giant in China, after capturing 49% shares of Proton and world’s largest market after selling more than 766,630 units in the first quarter of the year. It now plans to overtake Volkswagen AG and GM in the home ground.

Its market share rose to 6.5% in the first quarter which was 5.1% last year even after the decline of overall sales volume in China this year.