In the following interview, chairman Datuk Seri Mohd Nadzmi Mohd Salleh shares his views on the company’s business, strategies and growth outlook.
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| Mohd Nadzmi, chairman, Proton Holdings Bhd. |
Nadzmi: As an automotive manufacturer, we have what it takes to become the market leader — not just in domestic sales, but in all our target markets.
One of the reasons why we have been able to do this is because of our technological edge — through Lotus Engineering, as well as Proton’s very own research and development centre which allows us to style, design, build prototypes and test them at our state-of-the-art manufacturing facilities.
On top of all this, we have our strongest assets — our skilled and knowledgeable workers.
As a company, we are ready to adapt to the different expectations and requirements of the international market. We have the advantage of Lotus, and all our products are now equipped with the renowned Lotus lightweight technology for supreme ride and handling.
And we also have the advantage of size — we have the agility and ability to see to the needs of the market, and seize the right opportunities that come our way.
What have been the achievements of the group in the past four years?
Proton is the only company in Asean that can design and produce automobiles. One of our biggest achievements is that we managed to accelerate the country’s industrial processes, and in doing so, develop competent support industries.
We are also definitely more competitive now. Our local market share is around 29%, and this is mainly attributed to better customer acceptance of our new, higher quality products.
While Proton’s market share shrank before 2006, the volume improved by 2% when we introduced the Persona in 2007. Our sales volume increased further when we introduced the Saga in 2008 and the Exora in 2009, strengthening our presence in the B and C car segments.
In fact, we captured 46% of the domestic market share in 2008 after launching the Saga, a 4% increase compared to 2007. When we launched the Exora in April 2009, we captured a significant share of the local MPV market.
To complement this, our internal processes have been re-engineered for better efficiency and I believe we are now better equipped to face new challenges and are ready to expand our market globally. We now provide our customers with cars that they want, with high value added.
As further proof of our recent achievements, we’ve won numerous awards for our models, most recently Frost & Sullivan’s “Best Passenger Model Car of The Year” for the Saga and “Best Automotive Debut Model of The Year” for the Exora in 2010.
This year, we also presented the Emas at the Geneva Motor Show as a Global Concept Car, as part of a “concept-vehicle programme” to promote Proton’s technological capabilities. The product concept of Emas will be adopted for the new Proton model in the small car segment.
What has been the group’s strategy for expansion? How have these strategies turned out?
We are currently implementing a long-term strategy in key markets in the Middle East, China and Iran, as well as ensuring continuous growth in Asean. At the same time, we are also looking for strategic partnerships for our expansion plan, as the entry approach must involve parties with the right capabilities and local business experience.
While we are currently in talks with potential global original-equipment manufacturers (OEM), we have yet to conclude on any arrangement with any particular OEM. Additionally, the collaboration must also add benefit and value to the automotive ecosystem in Malaysia and the Proton brand.
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Proton maintains its position as a national automotive industry pioneer that caters to the masses. On this note, Proton has consistently produced cars that offer value for money, affordable technology such as the Body Control Module (BCM), as well as the Lotus ride and handling featured in Proton cars.
On an international level, Proton is determined to become a recognised and relevant global automotive player. The export market plays a big role in our future as the Malaysian domestic market’s growth is becoming saturated — the cars-to-population ratio in Malaysia is very similar to that of developed countries, and growing at the rate of 3% to 4% annually.
Did the financial crisis in 2008/09 have any impact on the group? What about the current economic turmoil in Europe?
The global automotive industry was affected by the financial crisis in 2008/09, and this included Proton. However, in our case, being small was actually an advantage, and because of our size, we were able to minimise the impact on our business. Proton’s presence in Europe is also small, hence we were not affected by the economic turmoil there.
Because Lotus has a bigger presence globally, the impact of the crisis on it is bigger. However, Lotus operates on small volumes, hence any financial damage was minimised.
What are the group’s plans for the future, both short term and long term? What are your group’s plans to compete in an increasingly globalised environment?
As mentioned earlier, we are currently in talks with global OEMs in search of strategic collaboration opportunities. The collaboration may include common global partnership such as product development, contract assembly, and purchase of engines, to name a few, but it has to be of a “win-win” nature where both parties will reap equal benefits.
Also, the export market plays a big role and this is part of both our short-and long-term strategy. In terms of maintaining a competitive edge, we will continue to invest in technologies such as hybrid engines and the electric vehicles, as well as human resources and products.
Where would you like to see the group in 10 years time?
We aim to be a strong and well-respected name in the global automotive industry. In doing so, we will continue to uphold our pledge to provide practical and value-for-money mobility to Malaysians.
Proton’s presence in the local market will be further strengthened, and Proton will also continue to expand its export market, where we hope to see positive results from our regional expansion plans.
Additionally, Proton will keep investing in new technology, human capital and new product development, and we will continue to drive product innovation and research, and keep our eyes on the innovation game. by The Edge Financial Daily
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