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Malaysia's Proton eyes 5 pc market-share of car market in India

Malaysian car manufacturer Perusahaan Otomobil Nasiional or Proton is targeting a five per cent market-share in India's passenger car segment within three to five years of operations in India.

This was revealed by Malaysian official news agency Bernama which quoted Proton's chief executive officer Mahaleel Ariff to that effect.

Mahaleel said after a signing ceremony that Proton plans to produce 3,000 units of the Wira car models in the initial phase of operations, but the model variants will be expanded over the years.

Proton cars will initially be placed in the medium luxury segment to compete with rivals like the Fiat Siena, Honda City, Ford Escort, Mitsubishi Lancer and Opel Astra.

He said production via the assembly of completely knocked down units in India is expected to commence in the fourth quarter of 2000.

Proton signed a memorandum of understanding with India's Hindustan Motors Limited today in Kuala Lumpur to commence a feasibilty study on CKD assembly of Proton cars by HM in India.

The feasibility study will focus on assembly of Proton cars in HM's facility in Madras and an evaluation of various car distribution options in the Indian sub-continent, Mahaleel said.

He also said it is a first-step initiative for Proton to apply for licences to assemble cars in India and to prepare for globalisation when the ASEAN Free Trade Agreement comes into force in 2003.

Part of this move involves the setting up of Proton plants in other parts of the world such as Egypt, South Africa and China, he said.

Mahaleel said that if the feasibility study is viable, it would lead to a long-term business relationship with HM, enabling them to share resources and complement each other in the automotive industry.

HM has the second largest vehicle sales and manufacturing volume in India.

Proton cars are currently exported to about 50 countries, with the United Kingdom being the largest export market. As at end-June 1999, a cumulative total of 186,000 Proton cars were exported.

Bridge News/Reuters/UNI

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