By Sharen Kaur, September 16, 2026
NEW DELHI: Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani has backed DRB-HICOM Bhd and Proton Holdings Bhd's efforts to explore opportunities in India's automotive industry.
This includes the potential use of the group's Tanjung Malim manufacturing capabilities in Perak to supply components or establish partnerships with Indian automotive players.
Johari said DRB-HICOM was exploring ways to leverage its manufacturing and automotive capabilities in Malaysia to participate directly in India.
This includes component supply, technology and engineering cooperation or joint ventures with local industry players.
"I believe DRB-HICOM has just started to explore this," he told the New Straits Times after the conclusion of the 18th BRICS summit, here on Sept 13.
"As the Investment, Trade and Industry Minister, I would certainly give full support to DRB-HICOM to explore its capacity in Tanjung Malim as one of the plants that can be directly involved in its efforts to participate in the automotive industry in India," the minister said.
The move comes as Malaysia seeks to deepen industrial cooperation with India and encourage Malaysian companies to tap the country's large consumer market and established automotive ecosystem.
Johari said the opportunity should not be viewed solely as an attempt to export finished vehicles but as a broader industrial play involving automotive components, manufacturing, technology and potential partnerships with Indian companies.
For DRB-HICOM, the Tanjung Malim complex provides an increasingly integrated manufacturing and technology base.
Proton has consolidated its manufacturing and R&D operations there, while its powertrain facility produces engines, transmissions and electric drive units for current and future vehicles.
Johari said DRB-HICOM could potentially use these capabilities as a platform to develop partnerships with Indian automotive companies and participate in the country's wider automotive supply chain.
"There is a lot of work in progress for Proton to emerge as a player in India's automotive market," he said.
The latest exploration marks a renewed look at India by Proton, which has previously studied opportunities in the market but has never established a commercial manufacturing or sales presence there.
During the BRICS Summit, Prime Minister Datuk Seri Anwar Ibrahim said DRB-HICOM and potential Indian industry partners had discussed opportunities.
However, no decision has been announced on a local plant, distributor, vehicle line-up or launch timetable.
India's scale adds to the attraction.
Passenger-vehicle registrations reached about 412,000 units in July 2026, up 15.4 per cent from a year earlier, according to JATO Dynamics India, with SUVs continuing to account for a significant share of demand.
For Proton, India could also provide an opportunity to extend its international expansion as the company builds its export business and develops electric and next-generation vehicles.
Proton recorded 6,000 export units in 2025, its highest export volume since 2012, while sales momentum continued into 2026.
In the first eight months of the year, Proton sold a total of 141,421 vehicles, up about 40 per cent year-on-year, driven in part by growing demand for its electrified models.
In August alone Proton sold 22,632 vehicles globally, its highest monthly sales performance since January 2010.
Johari said Malaysia's broader objective was to use India's huge market to create a more balanced two-way trading relationship, rather than simply increasing Malaysian exports.
His comments followed discussions with India's Commerce and Industry Minister Piyush Goyal on Malaysia's sizeable trade surplus with India and the need to expand two-way trade.
Johari said both countries were looking at ways to strengthen their trade framework, including potentially finalising or revising the existing free trade agreement within the next three to six months.
He said India's population of about 1.4 billion to 1.5 billion offered Malaysian companies a substantial market, while partnerships with Indian companies could allow Malaysian businesses to participate more deeply in the country's domestic economy.
"As a small nation, we want to see how we can work together with India, which has a huge population, and create a win-win situation between both nations instead of a one-way relationship," he said.
For DRB-HICOM, that strategy could extend beyond Proton-branded vehicles to components, engineering, manufacturing, technology and mobility solutions, potentially giving the group multiple entry points into India's automotive value chain.
The exploration also comes as DRB-HICOM develops Tanjung Malim as a broader automotive and next-generation vehicle hub.
The group has been positioning the Automotive High-Tech Valley as an ecosystem encompassing R&D, manufacturing, logistics and supporting automotive services.
Johari said the government would support efforts by Malaysian companies to use domestic industrial capabilities as a springboard for greater participation in large overseas markets.
"We cannot only trade with one or two countries. We want to trade with all countries, especially those with huge populations," he said.
Source: https://www.nst.com.my/business/corporate/2026/09/1534080/johari-backs-drb-hicom-proton-push-indias-auto-sector-watch
