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Malaysia
This Week in AsiaEconomics

Proton X70: an SUV, or a sign China-Malaysia ties are shifting up a gear?

  • Malaysians weren’t impressed when their national carmaker was rescued by China’s Geely, least of all Mahathir Mohamad. But the launch of a new car prompts hopes the relationship is on the road to recovery

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More than just a car? The Proton X70 SUV. Photo: AP
Tashny Sukumaran

When Chinese carmaker Zhejiang Geely stepped in to rescue Proton, the Malaysian national carmaker, some people saw the move as a blow to the country’s pride and sovereignty.

But yesterday’s launch of the first car under the new partnership – the X70 sports utility vehicle – has some sceptics rethinking their doubts, asking whether it could help bilateral relations shift up a gear.

Even at the time of the deal last year, few had doubted that Geely’s purchase of a 49.9 per cent stake in the struggling company was anything less than a lifeline. After all, Proton had been losing millions of ringgit a year, it had developed a reputation for poor quality and design, and plans for partnerships with Volkswagen and General Motors had fallen through.

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And yet, the mood in Malaysia was not one of celebration. “The deed is done. Proton can no longer be national. No national car now. We Malaysians are glad to be rid of this pesky car,” wrote Mahathir Mohamad, who conceived of Proton in the 1980s during his first stint as prime minister, in a May 2017 blog post. “I am sure Proton will do well. It will be a commercial success … But I cannot be proud of its success. I cannot be proud of the success of something that does not belong to me or my country.”

But the X70 seems to have prompted a mellowing in Mahathir, who finds himself once again in power after a shock election win in May.

At the car’s launch at the Kuala Lumpur Convention Centre on Wednesday, Mahathir gave off an air of grudging respect, saying that while the car “was not designed and built by Proton entirely … to be fast on the road you may need to cut corners”.

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