The Proton X90, the latest addition to the brand’s range of sport utility vehicles (SUVs) powered by a mild-hybrid version of its 1.5 TGDI engine, will be the first step.
Malaysian automaker Proton said Monday that its New Energy Vehicle (NEV) model plan was confirmed during a visit to Zeekr Intelligent Factory in Hangzhou Bay, Ningbo, China, by Minister of International Trade and Industry (MITI) Tengku Zafrul Aziz.
Following the visit, Proton said in a statement that the company’s move into the New Energy Vehicle segment had gained momentum.
The visit to Ningbo comes a day after Malaysian Prime Minister Anwar Ibrahim attended the Malaysia-China Business Forum in Beijing for business leaders from both countries.
The event saw the signing of a heads of agreement (HOA) document between DRB-Hicom and Geely, which sealed their commitment to jointly invest, manage, and develop Tanjung Malim, Malaysia’s Automotive High Tech Valley (AHTV), into a smart city and hub for Next Generation Vehicles (NxGV).
AHTV is expected to attract investments worth MYR32 billion ($7.26 billion) over the next ten years. Zeekr is a premium electric automobile brand owned by Geely Automobile Holdings that specialises in electric cars and operates on a user-oriented enterprise philosophy, in line with being a smart mobility technology company. It was founded in 2021.
The Zeekr Intelligent Factory exemplifies the highest level of manufacturing efficiency by maximising the application of IR4.0 and 5G connectivity. While traditional ICE-powered cars will continue to be the mainstay of Proton’s model lineup for the foreseeable future, the company has also established its NEV strategy.
Concurrently, through its collaboration with Geely, Proton continues to explore opportunities to accelerate NEV programmes in line with the government’s goals of increasing NEV traction, particularly by offering affordable and practical NEV models, as well as pursuing local manufacturing and New Energy Vehicle ecosystem development in Malaysia.
The Proton X90, the latest addition to the brand’s range of sport utility vehicles (SUVs) powered by a mild-hybrid version of its 1.5 TGDI engine, will be the first step. This will be followed by the PRO-introduction NETs of the smart #1 to the Malaysian market in the fourth quarter of 2023.
Following the minister’s visit, there are now plans to expand the range of offerings and include vehicle segments new to Proton.
“I am pleased to highlight that after five years of collaboration, Proton and Geely have made significant progress in bringing new products, technology, and investment to Malaysia,” said Syed Faisal Albar, Chairman of Proton.
Following the signing of the HOA in Beijing on April 1, he stated that it is now clear that AHTV has a high potential to attract MYR32 billion ($7.26 billion) in investment, and that the visit to Ningbo demonstrated that the Proton-Geely partnership will thrive with the future implementation of New Energy Vehicle programs.
He recognised the significance of Malaysia becoming a regional hub for NxGV products, and thus Proton, as the national brand, will play an active role in significantly contributing to the nation’s goals.
“In order to compete, Proton and the automotive ecosystem must invest in R&D as well as advanced manufacturing processes.”
“These goals are within reach with the progressive development of AHTV and constant engagement among stakeholders, particularly the Government of Malaysia, DRB-Hicom, Geely Group, Proton, and the automotive ecosystem,” he added. Proton has invested more than MYR3.3 billion ($750 million) in its performance turnaround initiatives since 2018, with support from DRB-Hicom and Geely.
These initiatives cover product development, new technology integration, manufacturing expansion, and human capital development, particularly in new and emerging technologies.
More investments are planned to focus on new products and technologies, such as new energy solutions and intelligent technologies, as AHTV develops.
The pursuit of transformation initiatives is especially important for the company, so collaboration with Geely in technology development is critical to achieving strategic goals. As of today, steps have been taken to achieve Proton’s long-term objectives.
To facilitate all development activities between the engineering teams, a permanent office has been established at the Geely Automobile Research Institute (GRI) in Hangzhou Bay.
The company has already assigned 18 engineers to work on the first phase of R&D and NEV development programmes, and more will be assigned soon, helping to accelerate technology transfer.
“Proton is now halfway through its ten-year business plan. ” Aside from the hiccups caused by two years of pandemic control measures, we are pleased with the progress made thus far’, said Li Chunrong, Proton‘s CEO.
He stated that over the next five years, the company intends to work even more closely with Geely and expand its offerings as the market for NEVs grows.
This, in turn, will aid in the development of the national automotive ecosystem and propel Malaysia closer to its goal of becoming a NxGV hub, he added. “We will also broaden our focus to include other aspects that benefit the industry,” he said.
“For example, charging infrastructure development is a priority for NEVs, so we will maximise synergy with the Geely group of companies to improve the NEV infrastructure for Proton and the Malaysian ecosystem.”