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Proton cars may come to India
Proton in talks to sign up with an Indian carmaker.
BY A CORRESPONDENT
May 24, 2006
Malaysia's Proton Holdings Bhd is planning to introduce its cars in India and China. Proton has been losing marketshare in Malaysia for sometime, though it is still the largest carmaker there. It is seeing exports as a way of boosting revenue. A deal with an Indian partner is expected to be signed by the end of the year.
Proton is currently in talks with car companies in India and China to introduce its cars. There are currently no plans to start subsidiaries here and launch production. Initially, cars may be brought in trough the CBU route. Proton is open to have a strategic partnership with an Indian partner, and divest a certain stake in their favour.
However, Proton refused to reveal the potential partners in India it is talking to. According to Malaysian deputy prime minister Najib Razak , a powerful foreign partner will open foreign markets to made-in-Malaysia cars.
According to him, the small Malaysian market does not afford carmakers to scale up operations. To enable volume-backed growth, proton needs to look outside, and India and China seemed to be the best suited.
Proton, a home-grown automotive firm, is the market leader in Malaysia. Proton cars were selling as much as two-third a few years; now it is down to four out of ten. Clearly, the company believes India and China will afford the growth options it lacks in hometown.
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