Proton Holdings History and Growth

Proton Holdings has a rich history that spans over five decades. The company was founded in 1983 as a national car project in Malaysia, with a goal of creating a domestic automobile industry.

Proton's early success was largely driven by the Wira model, which was launched in 1985 and became one of the best-selling cars in Malaysia. The Wira was a game-changer for the company, helping to establish Proton as a major player in the Southeast Asian market.

By the 1990s, Proton was exporting cars to several countries, including Australia and New Zealand. This marked an important milestone for the company, as it expanded its reach beyond Malaysia's borders.

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Proton began its manufacturing operations in September 1985 at its first plant in Shah Alam, Selangor, producing the Proton Saga based on Mitsubishi Motors technology.

The first Proton Saga rolled off the production line in 1985, marking the beginning of the company's journey.

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Initially, the Proton Saga's components were entirely manufactured by Mitsubishi, but as time passed, local parts were introduced as Proton gained skills and technology.

In 1993, Proton introduced the Proton Wira, a model based on the Mitsubishi Lancer/Colt, which went on to sell over 220,000 units between 1996 and 1998.

Proton's logo featured a crescent and a fourteen-pointed star, a nod to Malaysia's coat of arms, until the end of the 1990s.

The Proton Waja, launched in 2004, was the first car model designed internally by Proton, marking a significant milestone for the company.

The 100,000th Proton Saga was produced in January 1989, a notable achievement for the young company.

Proton Perdana, based on the Mitsubishi Galant/Eterna, was first produced in 1995, targeting the higher-end market with its premium features.

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The 1980s was a pivotal decade for Proton Holdings, marking the beginning of the Malaysian automotive industry. In 1979, then-Deputy Prime Minister Dato' Seri Dr. Mahathir bin Mohamad conceived the idea of a national car, which would later become Proton.

The National Car Project was approved by the Cabinet in 1982, leading to the equity investment of Proton on 7 May 1983. Proton was initially wholly owned by the government of Malaysia through Khazanah Nasional.

The first Malaysian car, the Proton Saga, was launched on 9 July 1985, based on the second-generation 1983 Mitsubishi Lancer Fiore 4-door saloon. The Proton Saga was powered by a 1.3-liter Mitsubishi Orion 4G13 engine.

Sales of the new Saga outstripped supply, and Proton struggled to meet the growing demand, but by mid-1986, it had captured a 64% majority domestic market share in the below 1600cc segment. Exports to Ireland began in 1988, and by March 1989, Proton had entered the United Kingdom car market.

Proton's sales declined during the late 1980s due to the worldwide economic recession and the lack of technical expertise in Proton's management. Kenji Iwabuchi, a former Mitsubishi Motors executive, was appointed as the managing director of Proton in 1988.

The 1990s saw the introduction of new models, including the Proton Saga Iswara, launched on 15 August 1992, which shared the older Mitsubishi platform used in the original Proton Saga. The Saga Iswara was widely used as taxicabs in Malaysia during the 1990s and 2000s.

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The Proton Wira was introduced on 21 May 1993, based on the fourth-generation 1991 Mitsubishi Lancer, and was sold in a four-door saloon guise at launch. By 1996, the Wira saloon and hatchback shared six different engines, all of which were sourced from Mitsubishi Motors.

Proton launched the three-door Proton Satria hatchback in 1994 and the two-door Proton Putracoupé in 1996, both of which are based on the Wira platform and powered by the same range of Mitsubishi engines offered in the Wira.

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The 2010s were a transformative period for Proton Holdings, marked by significant changes in its leadership and business strategy.

In 2012, Li Chunrong took over as the Chief Executive Officer of Proton Holdings.

This change in leadership led to a renewed focus on quality and efficiency, with Proton introducing a new range of vehicles that met international safety standards.

The Proton Iriz, launched in 2014, was one of the first vehicles to showcase this new direction.

The Iriz was a compact hatchback that boasted impressive fuel efficiency and a range of innovative features.

Proton's commitment to innovation continued with the launch of the Proton X70 in 2018, a compact SUV that quickly gained popularity in Malaysia.

The X70 was the first Proton vehicle to be designed and engineered in-house, marking a significant milestone for the company.

Proton Holdings has a diverse range of products and technologies. The company has been producing vehicles since the 1980s.

In the 1980s, Proton introduced the City car, with the Tiara being one of the notable models. The Tiara was a compact car that marked a significant milestone for the company.

The 1990s saw the introduction of the Subcompact category, with the Satria / Compact / 300 Series / GTi being one of the notable models. This car was a significant upgrade from its predecessors and featured improved performance and features.

One notable car from the 2000s is the Saga / Knight / Iswara / Mpi / LMST, a mid-range car that offered a balance of performance and affordability. This car was a best-seller for Proton during its production run.

The 2010s saw the introduction of the Persona, a compact car that was designed to be sporty and feature-packed. The Persona was a significant hit for Proton and helped to establish the company as a major player in the Malaysian automotive market.

Proton's product lineup has evolved significantly over the years, with the company introducing new models and technologies to stay competitive.

Proton Holdings has a diverse range of models available in the market.

The Proton Saga, introduced in 1985, is a long-running A-segment sedan that has been in production for over 35 years.

Proton's lineup includes the B-segment sedan Proton Persona, which has been in production since 1993.

The company has also ventured into the SUV market with the C-segment Proton X70, launched in 2018, and the B-segment Proton X50, introduced in 2020.

More recently, Proton has expanded its SUV offerings with the D-segment Proton X90 and the C-segment Proton S70, both launched in 2023.

Here is a list of Proton's current models:

Proton has a diverse range of models available in the market, catering to different segments and preferences.

The Proton Saga, introduced in 1985, is a long-running A-segment sedan that has been a staple in the Malaysian market.

The Proton Persona, on the other hand, is a B-segment sedan that has been in production since 1993, offering a more spacious and feature-packed alternative to the Saga.

More recently, Proton has expanded its offerings with the Proton X70, a C-segment SUV introduced in 2018, and the Proton X50, a B-segment SUV launched in 2020.

The Proton X90, a D-segment SUV, was introduced in 2023, while the Proton S70, a C-segment sedan, was also launched in the same year.

Proton is also venturing into the electric vehicle market with the Proton eMas 7, a C-segment electric SUV, which is expected to be launched in 2024, followed by the Proton eMas 5, a B-segment electric hatchback.

Here's a summary of Proton's current model lineup:

In 2006, Proton's sales plummeted by 30.4% from 166,118 units in 2005 to 115,538 units for the Malaysia market.

This significant drop in sales allowed Perodua to overtake Proton as the country's largest passenger carmaker for the first time.

Proton's market share fell from 40% in 2005 to 32% in 2006.

The company suffered three consecutive quarterly losses in the period ending December 31, 2006.

Proton's losses in 2006 were a staggering 281.5 million ringgit, compared to a profit of 86.5 million ringgit in 2005.

The total losses in 2007's financial year climbed to 169 million, a stark contrast to the company's previous financial performance.

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The Proton logo has undergone several changes over the years.

The original Proton logo in 1983 was a dark blue shield with a yellow crescent and a fourteen-pointed star, inspired by the Malaysian flag and coat of arms.

This emblem was only used for Proton cars sold domestically.

Proton cars exported to other markets had a different badge design featuring a yellow fourteen-pointed star surrounded by fourteen silver five-pointed stars.

The new Proton logo was introduced in 2000 on the Proton Waja, featuring a stylised yellow tiger head on a green roundel embossed upon a dark blue shield.

The Proton name was also changed from the lowercase italic text "proton" to the uppercase "PROTON" in Frutiger font.

The new badge was used on all Proton cars manufactured after 2000, both domestically and in export markets.

In 2008, the logo's colour was changed to two-tone, silver and black, used on the second generation Proton Saga.

A new Proton logo was introduced in June 2016 featuring a Malayan tiger head with a circle surrounding it in three-dimensional style.

This logo was used on all Proton latest models, including the 2017 Proton Iriz facelift and 2017 Proton Exora Enhanced.

Two years after the partnership with Geely in 2017, Proton Holdings unveiled a brand new logo and 'Inspiring Connections' tagline.

The new logo features lettering spelling out 'Proton', replacing the rear badge on the Proton X70, excluding the 2019 Exora.

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Proton has an impressive overseas presence with operations in 18 countries as of 2024.

These countries include Bangladesh, Myanmar, Brunei, Egypt, Fiji, Iraq, Jordan, Kenya, Mauritius, Mozambique, Nepal, Pakistan, Papua New Guinea, Sri Lanka, South Africa, Trinidad and Tobago, and Zimbabwe.

CKD plants are strategically located in key markets such as Pakistan, Kenya, Nepal, and Sri Lanka.

Proton announced plans to relaunch in Australia in 2019, marking a significant move to expand its presence in the region.

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Proton has been involved in several strategic partnerships and collaborations throughout its history.

In 2004, Proton formed a strategic partnership with Volkswagen AG, but the partnership ultimately failed due to differences in plans and terms.

The company has also partnered with Geely, a Chinese automaker, which has been a game-changer for Proton. Geely acquired a 49.9% stake in Proton in 2017 and has since helped Proton to enhance its vehicle quality, introduce new models, and incorporate cutting-edge technology.

Geely's expertise has enabled Proton to make a significant foray into the electric vehicle market with the Proton X90.

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Geely has established itself as one of the largest privately-owned automakers in China, with a diverse portfolio of passenger cars, commercial vehicles, and electric vehicles.

In 2017, Geely acquired a 49.9% stake in Proton Holdings Berhad, the parent company of Proton, marking a pivotal move in their partnership.

Geely's acquisition of Proton brought significant investment and expertise, fueling Proton's transformation and revitalisation.

The partnership allowed Proton to tap into Geely's cutting-edge technology and platforms, enabling them to enhance vehicle quality and introduce new models.

Geely's acquisition of Volvo and Lotus underscores its commitment to growth and innovation, a key aspect of its DNA.

The partnership between Geely and Proton has been transformative for both companies, expanding their market reach and bolstering their competitiveness within the automotive industry.

Geely's electric vehicle technology has enabled Proton to make a more substantial foray into the EV market with the Proton X90, aligning perfectly with the global trend towards sustainable and eco-friendly mobility solutions.

In 1994, Citroën announced plans to produce diesel-powered cars in Malaysia under a joint venture with Proton.

The joint venture aimed to transfer technology from PSA Peugeot Citroën to Proton, but it ultimately stagnated after the death of Proton's CEO, Tan Sri Yahaya Ahmad, in a helicopter crash in 1997.

The Proton Tiara, launched in 1996, was based on the Citroën AX and powered by a 1.1L Citroën I4 petrol engine.

Proton's partnership with Citroën was unsuccessful, and the Proton Tiara failed to compete with its rivals from Perodua, leading to its production ending in 2000.

On the other hand, Proton's collaboration with Honda in 2012 marked a new chapter in the company's history, allowing for technology enhancement and the sharing of vehicle platforms and facilities.

The result of the collaboration was the second generation Proton Perdana, unveiled in 2013, which was based on the North American eighth generation Honda Accord.

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Proton Holdings has received recognition in the automotive industry through various awards and accolades.

Proton was awarded the People's Choice in the Automotive Category at the Putra Brands Awards in both 2017 and 2018.

This achievement highlights Proton's commitment to producing high-quality vehicles that meet the needs and preferences of its customers.

Here are some of the notable awards Proton has received:

Proton Motorsports Division, also known as "Race.Rally.Research., R3", was established in 2003.

Proton re-entered the Asia-Pacific Rally Championship (APRC) in 2010, competing under the official team name of Proton Motorsports with drivers Chris Atkinson and Alister McRae.

The Proton Satria Neo S2000 replaced the Proton PERT as Proton's premier rally car, and was prepared by British-based Mellors Elliot Motorsport (MEM) in accordance to FIA Super 2000 specifications.

Proton drivers McRae and Atkinson placed 3rd and 5th respectively in the 2010 APRC season, despite facing technical problems and stiff competition from other rally cars.

The 2011 APRC season concluded with a one-two Proton Motorsports victory with drivers McRae and Atkinson in their Satria Neo S2000s, with Karamjit Singh also achieving a 1st place in the 2WD category and 7th overall in the championship.

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Proton re-entered the Asia-Pacific Rally Championship (APRC) in 2010 after a 5-year absence due to financial problems. The company competes under the official team name of Proton Motorsports with former WRC drivers Chris Atkinson and Alister McRae.

The Proton Satria Neo S2000 replaced the Proton PERT as Proton's premier rally car, and was prepared by British-based Mellors Elliot Motorsport (MEM) in accordance to FIA Super 2000 specifications. The cars cost over RM1 million each.

Proton drivers McRae and Atkinson placed 3rd and 5th respectively in the 2010 APRC season despite facing technical problems and stiff competition. The Mitsubishi Lancer Evolution and Subaru Impreza rally cars were particularly challenging for Proton.

In 2011, Malaysian rally veteran Karamjit Singh rejoined the APRC in a Group N2 WDCUSCO Japan-tuned 1.6L CamPro 145 hp (170Nm) version of the Satria Neo. Karamjit placed 1st in the 2WD category and 7th overall in the championship.

The 2011 season concluded with a one-two Proton Motorsports victory with drivers McRae and Atkinson in their Satria Neo S2000s.

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Proton entered the Intercontinental Rally Challenge in 2009 with the Proton Satria NeoSuper 2000. Their best result was Alister McRae finishing 2nd place at 2009 Rally Scotland.

The team had a tough time in 2010, with many retirements and no points scored. Drivers that year included Alister McRae, Chris Atkinson, Niall McShea, Keith Cronin, Gilles Panizzi, and privateer Tom Cave with factory support.

Gilles Panizzi had the best result of the 2010 season, finishing 22nd at the 2010 Rallye Sanremo.

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Proton Holdings has undergone significant changes in recent years. One notable event was the company's acquisition by DRB-HICOM in 2012, which marked a new chapter in its history.

This acquisition led to a major restructuring of the company, resulting in the formation of Proton Holdings Bhd. The company's new ownership also brought about a significant increase in investment, which helped to revamp its product lineup and manufacturing facilities.

The introduction of new models such as the Proton Iriz and Proton X70 has been a major trend in the company's recent history. These models have been well-received by customers and have helped to boost the company's sales.

Proton's partnership with Geely, a Chinese automaker, has also been a significant trend in recent years. This partnership has led to the introduction of new technologies and models, such as the Proton X50, which has been a huge success in the market.

The company's focus on electric vehicles is another notable trend. Proton has announced plans to launch an electric vehicle by 2025, which will be a significant step towards reducing the company's carbon footprint.

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Proton partnered with Suzuki and rebadged the Suzuki Ertiga, with 25 of its Suzuki dealership outlets converted into Proton Edar outlets bearing both logos.

The partnership with Suzuki was announced in June 2015, showcasing Proton's efforts to expand its dealership network.

Proton's collaboration with Suzuki demonstrates its ability to adapt and grow its business through strategic partnerships.

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Proton has acquired Lotus technologies from Bugatti in 1996, gaining a source of engineering and automotive expertise. This expertise led to the production of the Proton Gen-2, a car manufactured and assembled at the new plant in Tanjung Malim, Perak.

The Gen-2 was the first car to be produced at the new plant, which was part of the Proton City development project. The plant was opened in 2004.

Proton also introduced the Proton Savvy, a 1,200 cc 5-door supermini, in June 2005. This model was manufactured in Tanjung Malim, alongside the Gen-2.

MG Rover was interested in rebadging the Gen-2 and Savvy, but talks with Proton were unsuccessful due to the collapse of the British firm.

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Proton partnered with Suzuki and rebadged the Suzuki Ertiga.

In 2015, 25 of Proton's Suzuki dealership outlets were converted into Proton Edar outlets and displayed both Proton and Suzuki logos.

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