Electric Proton vehicle could foster emergence of domestic supply networks, potentially displacing existing ones.

In a significant move towards electrification, Proton, the Malaysian national car manufacturer, unveiled its first electric vehicle (EV), the e.Mas7, in December 2024. The announcement comes as part of a broader shift towards sustainable living and decarbonisation across Asia Pacific, including China and Malaysia.

The e.Mas7, priced between RM105,800 and RM119,800, is more expensive than the country's bestselling internal combustion engine (ICE) car, the Perodua Bezza. Despite this, the new EV has been met with interest, as Proton continues to push for exports, with plans to send the e.Mas7 to Mauritius, Nepal, Singapore, Trinidad and Tobago, and Brunei.

However, the transition to EVs in Malaysia may not be as swift as some might expect. The announced removal of fuel subsidies does not necessarily mean a shift away from ICE cars. Instead, the subsidy will be maintained for lower-income households, suggesting a continued preference for traditional vehicles. A recent survey indicated that 40% of Malaysian consumers still prefer ICE cars, while 20% prefer hybrid cars. Malaysian consumers, by and large, are still cautious about EV adoption.

Proton's foray into EV production is not without its challenges. While EVs use fewer mechanical parts compared to ICE automobiles, they require new batteries, additional semiconductors, and advanced electronic components. To address these needs, Proton has secured new equity and technology partners. Malaysia's majority owner DRB HICOM and China's Zhejiang Geely Holding Group, which owns 49.9% of Proton, are key partners in Proton’s EV development and production capabilities. Geely’s cooperation and investment are crucial to Proton’s EV development and production capabilities in their new EV assembly plant in Perak, Malaysia.

In addition to the e.Mas7, Proton has also been pushing to export its ICE cars, including the X-series models, to Kenya, Mauritius, South Africa, Pakistan, Brunei, Bangladesh, and Egypt. To support this expansion, Proton invested in a new high-tech engine assembly line in 2023, capable of producing 180,000 units a year.

Recognising the need for a robust EV component supply chain, Proton arranged a business match-making event in July 2024 to facilitate the development of new EV component supply chains. The e.Mas7, initially, will be imported from China as a Completely-Built-Up (CBU) unit, as Proton's new EV manufacturing plant in Tanjung Malim, Malaysia will be operational only by the end of 2025.

This move towards electrification aligns with the United Nations' Sustainable Development Goals (SDGs) of Economic growth and Infrastructure, as well as Consumption. The article, first published on Fulcrum, ISEAS - Yusof Ishak Institute's blogsite, is tagged with ASEAN, charging, consumer products, design, economy, electric vehicles, factories, hybrid vehicles, investment, supply chain, trade, business resilience, decarbonisation, sustainable lifestyle, innovation, electrification, manufacturing, climate tech. As Proton continues to innovate and invest in electrification, it is poised to play a significant role in the region's transition towards a more sustainable future.