How Malaysian carmaker Proton cut costs and revived its fortunes, with plans to expand in Asia

Chinese carmaker Geely bought a stake in Proton in 2017 and appointed Li Chunrong to turn it around, eclipsing Honda and Toyota in two years

Proton now plans to expand to Thailand, Indonesia, Singapore and Brunei, while also considering the Middle East

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Proton, launched in 1983, was Malaysia’s market leader in its early years before its sales dropped. It has reversed its fortunes under new leadership. Photo: Reuters

Published: 7:00am, 30 Jan 2020Updated: 7:00am, 30 Jan 2020

Li Chunrong was hired by Chinese carmaker Geely to revive the fortunes of the Proton brand in Malaysia, and it took him two years to eclipse Japanese giants Honda and Toyota. Now he plans to take the fight across Southeast Asia and beyond.

Li, appointed Proton CEO in 2017 when Geely acquired 49.9 per cent of the company, has turned around a once-celebrated Malaysian marque that had to rely on state aid after a string of losses, with his success built on an aggressive cost-cutting drive.

Now Geely has told the Proton boss to expand across the region, initially focusing on Thailand, Indonesia, Singapore and Brunei, Li said – the first time concrete details of the brand’s expansion plans have been disclosed.

Proton chief executive officer Li Chunrong was appointed in 2017. Photo: Reuters

Like Malaysia, they are right-hand drive markets so require fewer car modifications. Proton also aims to drive into the Middle East and increase sales to Egypt, said the 56-year-old Chinese national.

Li did not give specific time frames for expansion into individual markets, but said Proton wanted to raise overseas sales – which stood at about 1,000 cars last year, or 1 per cent of total sales – at least fourfold this year.