Proton- Hero Group to launch cars in India

Somehow, this is a news item we missed in the last month.  It seems that Munjal-owned Hero Group is conducting its final talks with Proton of Malaysia to manufacture cars in India.

Proton has been trying to enter the Indian market for a while. We first reported on this in 2006, in this story Proton may come to India

In 2008, we heard more about the intentions of Proton for India. By then, Proton had conducted futile talks with SOnalika Motors and Hindustan Motors and were planning to go it alone.

However, all that seems to have changed, and things are getting closer to an actual announcement.

The Economic Times has reported, quoting a source in the Malaysian embassy that negotiations with Hero Group are in their final stages. Hero Group owns Hero Honda, the world’s largest two-wheeler manufacturer by sheer volume.

If this is true, there is a chance that the upcoming Auto Expo 2010 in New Delhi might see a bunch of vehicles from Proton. Our guess – mind you. The companies involved are not saying anything officially.

Proton cars are currently being sold in many countries including Australia and the United Kingdom.

Proton cars for India: Saga and Savvy?

According to some reports, the two cars under consideration for an India launch by the Proton and Hero group are the Saga sedan, and the Savvy hatchback. Car buyers in India does not know Proton – brand image would be zero to start with. Plus, their partner is a two-wheeler manufacturer, most famous for churning out 100 cc Hero Honda motorcycles for more than a decade, before they decided to offer more powerful bikes. Not a great recipe for instant brand recognition. To have an impact, the companies would need to build the brand in India from scratch, creating awareness, and ensuring the cars stand up to scrutiny from a critical public. Plus, there is the necessity to price the cars low enough to make them look like great value for money options. That a countrywide dealer and service network are critical goes without saying.

Photo: Proton Saga mid-size car

The Proton Saga is a small mid-size car, reasonably attractive to look at, and is available with 1300cc or 1500 cc petrol engines. Manual and automatic are both available. There is no diesel option available, which might be a bit of a problem as India loves diesel cars. The petrol 1.3 liter engine produces 94 bhp, while the 1.6 liter version produces 114 bhp.

Our belief is that if the Proton Saga makes it to India, at some point they will need to consider a diesel option – and what better diesel than the super-popular Fiat Multijet diesel which currently does duty in everything from the Fiat Linea to the Suzuki Swift diesel? Unless Proton has something else in mind…

Photo: Proton Savvy small car

The Proton Savvy is a hatchback car, with looks that would position it at the low end of the hatchback amrket. Size-wise, it could compete with the i10 or similar cars in that class. The current design of the Savvy though does not look very modern. The car produces 75 bhp from a 1200 cc engine. Here too, the problem of no diesel engine arises. If Proton comes to India through the JV with Hero Group, we are sure they would have found a way out the situation one way or another. We will keep you posted on any new developments.