I’ve been here seven years, I’ve never seen so many new brands coming into this mature market. At least 15 new brands and 35 models came into Malaysia, and a majority of them are Proton’s competitors.”

So said Proton CEO Dr Li Chunrong at last night’s Chinese New Year media dinner, while showing a slide of all the Chinese brands and their models either already on sale in Malaysia or coming, and their volumes.

“For customers, this is good because you get more choices. That is 100% correct, but in the long run, your car may be orphaned (if the brand exits the market),” he said.

He explained that if production numbers cannot be sustained over a long enough period, the low volume/orders will negatively affect local vendors and parts suppliers in Malaysia.

51% of the 35 new models are electric vehicles (EV), which is unsurprising given the current tax-free entry conditions, but what’s perhaps more of a revelation is where (or rather how) they are assembled.

The slide makes a distinction between fully-imported (CBU), semi-knocked down (SKD) and completely-knocked down (CKD).

It showed that 77% of the 35 new models are CBU, 20% SKD and only 3% CKD (one out of 35). Although Malaysia has minimum local content requirements to be considered CKD proper, the terms SKD and CKD are often used interchangeably in this country. Most carmakers use the term CKD even with little to no localisation.

“(Car brands) in Malaysia will have to do localisation (for local assembly), because I don’t believe the Malaysian government will allow you to only do SKD (as opposed to proper CKD),” Dr Li said.

While he did not say which model was proper CKD, he pointed out the Jaecoo J7‘s volume as an example of one that could support a full CKD vendor ecosystem. The Jaecoo J7 is made in Chery’s own plant in Shah Alam, as opposed to contract assembly.

His point is, while it’s all well and good to have more brands and models coming into Malaysia, it may also have detrimental effects in the long run if the market doesn’t get proportionally bigger.

Local assembly programmes really only benefit the local vendor and parts supply ecosystem once they hit a high enough volume, which then needs to be sustained over a long period.

Failing that – and with more competition, each model’s chances will only become lower – both vendors and end consumers risk being left out in the cold, the former with unprofitable low orders, the latter with the possibility of the brand exiting the market completely. Basically, choose your next car carefully, says Dr Li.

This post has been edited by diffyhelman2: Jan 24 2025, 06:44 PM

Buy buy buy they said. "Got 7 years warranty mar".


My answer. "If they are still around to honour it".


Good luck.

This post has been edited by TOMEI-R: Jan 24 2025, 06:47 PM

Sample case study: Cherry brand when they exited Malaysia last time, leaving Cherry car owners stranded.

Then Cherry make comeback again to Malaysia under different dealers.

Beli dua biji can solve the problem of being abandoned

Because of stupid protectionist policies that only allow the shitty car brand from China to come here.

Let them bring Xiaomi Su7 here first then see the difference la.

i cannot brain why allow rubbish such as Neta and Jaeco come into Msia

while increasing tariffs for traditional ICE cars like Accord and Camry to be above 200k

I saw jav and kimchi brands exiting as well

i mean he is not wrong because it happened before

and back then it was like 2-3 brands only and already catastrophic, now it's mentioned to be 15 brands

buy, use 3 year

THROW AWAY

Inb4 Fool me once shame on you, fool me twice shame on me.

Malaysia majority can splurge on cars. Wont be interested in china CKD.

See current Chery sales, not far off to pull out again. Who buy neta v now also will be in deep trouble.

Breed more, more kids = more future buyers, bigger market.

Many legacy ice brands will also not be around in 7 years....

Treat these cars like low end android china made phones. Every year new model and revision.

Ehem... Net... ehem... taaa

Examples: Ssangyong (Korea) and Mitsuoka (Japan)

Cukur proton is Mcdani brand, not ccp

padan mukar hipstur

fun Fact.

Volvo... Always lose to MB and BMW. They are still here though. Rarely see Volvo abandoned by the side of the road or in any estate or housing development.

And they despite being an Swedish Cum Sino brand now, stick stick to their guns and did not exit yet.

Shall see how Nissan fares... Exit or swallow up by Honda?