Troubled carmaker Proton has lost its top dog status after nearly a quarter-century as Malaysia's biggest-selling carmaker was edged out by another homegrown manufacturer, Perodua.

"This is the first time Perodua has secured the number one spot," Malaysian Automotive Association (MAA) president Aishah Ahmad said Thursday.

Proton's market share has fallen sharply in recent years due to the whittling away of duties that has made imports more affordable and a persistent reputation for poor quality and unimaginative models.

Proton was set up in 1983 as part of Malaysia's drive into heavy industry while Perodua began operations in 1995 as a producer of small and fuel-efficient compact models.

In 2006, Perodua led national sales with 152,733 units, giving it a market share of 42 percent, up from 32 percent the year before, according to MAA data.

Proton sales fell to 115,538 units for a market share of 32 percent, down from 40 percent in 2005. It had held the top sales spot since 1985.

Japanese small-car maker Daihatsu Motor, a subsidiary of Toyota, owns a 51 percent stake in Perodua which has produced a series of attractive models well suited to the Malaysian market.

In a telling tale, Proton's new compact Savvy model launched a year ago has been ignored while Perodua's Myvi with its better looks and high-quality interior has a long waiting list and is massively outselling the Savvy.

Loss-making Proton is in the process of selecting a strategic partner to arrest its sharp decline and is in negotiations with US auto giant General Motors, Volkswagen of Germany and PSA Peugeot Citroen oF France.

The Malaysian government owns 59 percent of Proton, including a 43 percent stake held by its investment arm Khazanah Nasional.

The MAA said sales of new motor vehicles in Malaysia, Southeast Asia's biggest passenger car market, fell 11 percent to 490,768 in 2006 and forecast growth in 2007 to remain flat with just 1.9 percent expansion to 500,000.

Aishah said the slowdown was due to higher interest rates, stringent approval processing of hire-purchase loans and shorter repayment periods, as well as higher fuel costs and extremely weak used car prices.

"It will be a competitive year (in 2007) but the worst is over. Consumers will have to accept the prices for their second-hand cars," she told a press conference.

Sales of imported vehicles fell 15.1 percent last year to 80,931 in 2006, with this segment sector led by Japanese carmakers Toyota, Honda and Nissan.

Ang Bon Beng, executive director of Nissan distributor Edaran Tan Chong Motors, said vehicle sales for the first quarter of 2007 were expected to be quiet.

"Only in the second quarter, when industry players bring in new models, will there be a slight improvement," he said, adding that Nissan will introduce two new models.

"This month is unusually quiet (ahead of the Lunar New year celebration in February). It is quite abnormal compared to the last two years. I expect sales to be flat for the whole year," he added. - AFP

http://malaysia-today.net/blog2006/newsncom.php?itemid=2090

Comments
terung nakal wrote:
I still remember sometime in late 96' when i wanted to buy a Satria..what option back then to buy car..
So came out proudly the proton advertisement,Satria with downpayment Only RM 14,xxx...

Sekarang Proton..apa sudah jadi??

Served you right you *******!!!
25/01 22:33:38
KopiO wrote:
Proton has made us drive expensive but extremely inferior car. We consumers are practically paying from our own pocket to subsidize incompetency, inefficiency and near-monopoly of the national car maker.

Proton is Mahathir's pet project that is a disgrace to Malaysia. You deserve what you get today. Sell out Proton and I will open my wine to savour sweet revenge!
25/01 22:50:51
mendela wrote:
.
With almost all employees of Proton from a single race, how can Proton not fail?

There was a report recently said that Japaneses, Chineses and Koreans are the smartest people on earth, even smarter than the North Europeans!

I probably know why. These people all use chopsticks!

Vietnam people use chopsticks too. Though they are not in the smartest list, but who else on earth had beaten the French and the mighty Americans?

Malays MUST use chopsticks at home. Many studies have proved that using chopsticks would improve your IQ.

To turnaround Proton, all Proton employees must use chopsticks!
25/01 23:06:54
AnginLalu wrote:
###'... a persistent reputation for poor quality and unimaginative models.###

Yeah, for a good 25 years 90.9999% of fellow M'sians had been short changed with that shitty over-hyped socalled "national car" at an artificially high price tag! All thanks to the F@#KING 'genius' of that menacing visionary!!!
###... negotiations with US auto giant General Motors, Volkswagen of Germany and PSA Peugeot Citroen oF France.###

Take your long sweet time to negotiate; the owrld out there will wait for you?! Day Dreamer: PROTON BODOH!

2006, 32%; 2007, sure only 24% ('yee-seh' i.e. EASY DIE!; 2008, 14% (DIE 10 times!), another forgone conclusion!

You can only fool the people some times.
But you just cannot fool the people all the times. The truth is out now, COLD BUT TRUE!
25/01 23:08:22
KopiO wrote:
mendela,

Your comments are very racist lah...I don't think the Chinese readers here would agree with your point of view.

I suggest you read a famous book entitled "The Ugly Chinese" by a Taiwanese author Po Yang, which was published in 1980s and became the Chinese bestseller during the time.
25/01 23:14:30
johnleemk wrote:
Because of our excessive protectionism, our car industry is hurting. Perodua, which was always forced to play second stringer to Proton in government subsidies, thus had greater incentive to compete and innovate, leading to its current domination of the local auto market.

The government must fix its economic policies if it wants to keep the country from failing. Continue down the path of protectionism, and we are doomed:

http://www.infernalrambling...
25/01 23:21:50
mendela wrote:
.
Dear KopiO,
I read that Po Yang book when I was a kid. We cannot compare ugly with high IQ.

Nothing racist here. I am telling facts. Indeed that IQ comparison report was in major world media about a week ago.

I am saying it is for the good of the nation and Proton, no hiden agenda nor racism.I want all Malaysians to have higher IQ!
25/01 23:24:02
KopiO wrote:
mendela,
May you succeed in your endeavour...
25/01 23:26:25
HonestTruthful wrote:
Mendela's comments may be racist, but it's the funniest comment I have ever read for a very very long time. Oh man!! It's so funny!!! LMAO
25/01 23:28:06
emptychatter wrote:
The rot will continue unless Proton resorts to drastic measures.
I rate Lim Kit Siang a greater visionary than the other guy. He called it a "Protean Saga" when the other was adamant in going ahead.
Time has revealed another folly of this so-called "great vsionary" besides many more to come.
25/01 23:35:53
dcmchin wrote:
Remember those days that we were forced to buy the so-called national car with full accessories, otherwise, no deal.

Remember those days that we were forced to put up with the arrogant sales man, otherwise, get your new car next door.

Malaysia Boleh. Great wake up call.
25/01 23:39:21
mendela wrote:
Dear HonestTruthful,

Thanks for your support. I just telling facts and commonsense. I am not racist!

By the way, do you know why Japanese companies are focusing their FDI in Vietnam now?

The answer is chopsticks! Like me, most Japanese multi-national companies think the same too. Vietnam is the only developing countries other than China that use chopsticks so their operators must be having high IQ and highly skillful!
25/01 23:43:19
davidpaul2020 wrote:
if proton failed it was because of failed management, not a failed vision.

If one has a problem differentiating between a vision and management, then I suggest getting a good dictionary.

But again, what's the point? some people are beyond education.
25/01 23:43:22
LT wrote:
wahh.. davidpaul2020, garangnya.
26/01 00:00:16
ChowChiBaiMalay wrote:
Proton is TRUELY A PIECE OF JUNK.

I ahve just sold off my WAJA, LOSTING RM39,000 in 3 years.

I have never buy Proton for life. Everyone who buy a Proton is a FOOL.

You will regreat for life if you buy Proton.

TELL ALL MALAYSIAN to BOYCOTT PROTON and Let Proton die of natural death so that we can enjoy cheaper and better quality imported car.

PROTON -> PLEASE CLOSE SHOP NOW. You are DOOM !
26/01 00:05:34
skamil wrote:
Proton started out ok but lost its way. Its top management did not have the vision nor the courage to compete. Instead it chose to take on Perodua - but failed because its design and engineering team did not understand what Malaysians and other customers wanted. So we had to endure ugly and unwanted cars like the Tiara, Juara, Arena and lately the Savvy.

Ironic because Proton was not savvy enough to produce MPVs, SUVs and saloons that were much desired and in demand. This demand was tapped by Naza / Kia, Toyota and others.

Worse, Proton, simply failed to leverage on Lotus and then decided to acquire a failing motorbike producer which cost the enterprise dearly.

From my observations and analyses, Proton is suffering from dire lack of automotive passion, failed marketing / CRM and non-existent business acumen further compounded by 'small-minds' in its management. Our government must let Proton go by divesting shares in the company. Proton must find its way and hopefully market success, on its own merit and competing with others without protection. Only then would it find inner strength to compete and survive in a globalised market; or else it may just let itself get taken-over, failing which it should try to make a graceful exit.
26/01 00:06:51
Solaris wrote:
The vision to have our own national car is inline with the vision to be fully industrialized country by 2020. It is not because the car is sub-standard or rather low quality. Take Datsun 120Y last time wasn't it like Tin susu? But I still remember that car sold well here in Malaysia even the Singapore Police used that model as their patrol car back in the 80's. The problem with Proton is that the current government does not care less about our national assets. For them by having Proton is a liability to them. Proton have the potential to become global player if they stick to the right direction.....The only hope to save Proton is to get rid the current management and appoint new team consist of top brass of automotive industries. Let it be foreigners as long as Proton remains MALAYSIAN PRIDE...
26/01 00:09:25
KarmannGhia wrote:
What has happen to our national pride now? Proton no more? whatever is happening? Proton can't even perform with TDM?

What's new?

Brings to mind the children's rhyme.......

"all the king's men and all the king's horses, couldn't put humpty back together again"
26/01 00:32:30
WTF wrote:
Just close down Proton and we consumers will be very happy.................Toyota cars at Proton cars price...........hmn....hmn........
26/01 01:03:58
cynical cynic wrote:
Mendela

One of the most briliant deduction I have seen on MT - LOL!

I would also like to add another insight into Proton's quality stamp system (LULUS, Sahabat Proton etc), which is supposed to be the benchmark of prestige and quality. What most people don't know is that Proton has been adopting a new benchmark for their quality stamp however this has not been made public.

So before you buy your next Proton, look for the sticker and verify the status

LULUS! - The bumper and soft top are about to fall off in a few months time. Engine is expected to run with occasional breakdowns.

REALLY LULUS - Basically like above but with the bumper problems mostly fixed, however this come at the expense of the wobbly side mirrors.

LULUS (mouse edition) - practically like LULUS but the inside fitting is done in such a special way that a squeeking noise can be heard when driving 120 km/h on a highway. Suitable for family with pet cat to prevent the feline from getting bored in the car.

LULUS - PERCAYALAH! - Avoid this at all cost. This particular unit has actually failed the quality control test however the supervisor couldn't be bothered to complete the quality control form because he couldn't find his pen.

SAHABAT PROTON - Another word for 'Proton suckers community'. The whole concept is a bit like the 'AA alcoholic anonymous' network - the whole aim is to enable all Proton owners nationwide to cry on each other's shoulders for emotional support (at a bargain fee of RM45.99 a year)

So watch out when you buy your next Proton. Adding this to the fact that Proton is currently considering to change their corporate motto to 'Caveat Emptor'. Consider yourself warned!
26/01 01:17:18
bumi non malay wrote:
Proton = UMNO Racist = LOUSY Ciplak

crazy to buy proton , Insane to buy its used car......still people don't learn then serve you right!!...To the sane Keep up the Boycott of Proton and anything UMNO racist!!
26/01 04:05:30
Grasshopper wrote:
Good riddance to bad rubbish! Bought my first Proton then found that my 4 year old second hand VW in Canada was a far superior car than a new Proton.

The whole Malaysian car project reeks of a bad scam job. From "optional" accessories that is rammed down your throat to additional financing charges.
Unfortuantely, Joe Public gets taken for a ride yet again.

Thats the price you pay when the company is run by people afflicted with CJD.
26/01 06:32:50
arion2000 wrote:
The time of punishment is upon you o dear Proton. Be prepared to be axed.
26/01 06:38:16
head hunter wrote:
bank bumi, bank rakyat, perwaja, public universities, tabung haji, proton ............... d list goes on n on.

what do they all hv in common? they r staffed by almost, if not fully, 100% malays.

is there a lesson to b learned here? yes.

n that is, u can gobble up everything, but in d end, it is still SHIT that comes out.

when r d malays ever going to learn?
26/01 07:35:44
kautim wrote:
No need to learn one lah also got money comming into the pocket wat. So if cannot kautim, pass back to gomen lah, cos failure is always an option. Like that one mesti boleh kautim.!!
26/01 07:59:00
brs1 wrote:
Proton started off very well. It then had vision,protection etc. Along the way, seeing its success, the Great visionary leader DR M decided it should be the showcase of the achievements of one single race. That is where it went wrong. It got people who could not spell 'automobile' into the industry, was it the late Tan Sri or the Raja Mahaleel who did it I am not sure. I have had 4 protons. The engine is ok. As for the other thing it could be better. I will still buy a proton because it is made in Malaysia. Have that spirit we will do better.
26/01 08:13:20
temanmu wrote:
Satu lagi Projek Kerajaan Barisan Nasional
26/01 08:36:42
whodhellknew wrote:
When are we gonna learn not to generalise races?

When are we gonna learn that we can be wrong too?

Don't get me wrong, I think Proton needs a good tune up. I just think a lot of commenters here need to think more.

cheers

durian berlaga, timun yang susah

the gov makes them cheap by making others expensive

ah, u r here finally. yes, nothing new, sh1t as b4. the pot calling the kettle's black

i tink 1 day he will die in a proton

best seller normally is the cheapest not the best

btw, have you tattoo the proton tiger logo to ur backside?

spot the difference, why proton din kena sue 1??

is that hypermount?

i hope they dun coz if they do, it will be our money

---

Added on January 28, 2007, 7:02 ammaybe those idiots dont want proton to survive

This post has been edited by Drifter: Jan 28 2007, 07:02 AM