Potentially Stimulating Local Production Chains with Proton's Electric Vehicles - Could Established Supply Chains be Overtaken?

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In the ever-evolving landscape of the automotive industry, Proton, the Malaysian national car manufacturer, is making significant strides towards electrification. The company's foray into the electric vehicle (EV) market is not only a testament to its commitment to sustainability but also a boost to the global EV supply chains.

At the heart of Proton's electrification strategy is the e.Mas7, its first electric vehicle, which was launched in December 2024. Initially, the e.Mas7 will be imported from China as a Completely-Built-Up unit, with plans to transition towards local production in the future. The price of the e.Mas7 ranges from RM105,800 to RM119,800, making it an accessible option for many.

Proton's investment in electrification is not limited to the e.Mas7. In 2023, the company invested RM1.8 billion in upgrading its Tanjung Malim plant to establish a new high-tech engine assembly line, a move that underscores its confidence in the continued demand for Internal Combustion Engine (ICE) cars, both locally and globally.

The growth of the EV market and its associated supply chains is a critical aspect of the global efforts towards decarbonisation and sustainable living. The market for EV components is an example of derived demand, expanding with growth in EV automobile sales. Proton's investment in a new high-tech engine assembly line and its plans to develop new EV component supply chains are significant contributions to this cause.

In line with its commitment to exports, Proton has been pushing for the export of its ICE cars since 2020 to countries like Kenya, Mauritius, South Africa, Pakistan, Brunei, Bangladesh, and Egypt. With the launch of the e.Mas7, Proton plans to expand its export reach to Mauritius, Nepal, Singapore, Trinidad and Tobago, and Brunei.

To facilitate the development of new EV component supply chains, Proton arranged a business match-making event in July 2024. However, the search results do not provide information about which companies have partnered with Proton in Malaysia for this purpose.

This article, first published on Fulcrum, ISEAS - Yusof Ishak Institute's blogsite, focuses on the Asia Pacific, China, and Malaysia regions, and contributes to the achievement of SDGs 8 (Economic growth) and 9 (Infrastructure). The tags associated with this article include ASEAN, charging, consumer products, design, economy, electric vehicles, factories, hybrid vehicles, investment, supply chain, trade, business resilience, decarbonisation, sustainable lifestyle, innovation, electrification, manufacturing, and climate tech.

In conclusion, Proton's journey into the electric vehicle market is a significant step towards a sustainable future. With its investments in new technologies, a focus on exports, and efforts to develop local supply chains, Proton is not only contributing to the growth of the EV market but also fostering business resilience and economic growth in the region.