Proton eyes China production

By Sharen Kaur from Beijing

DRIVEN BY LOTUS' SUCCESS: National carmaker exploring partnerships

PROTON Holdings Bhd is looking at manufacturing cars in China, riding on the success and future growth of  the Lotus marque in the region, says former Prime Minister Tun Dr Mahathir Mohamad.

  Dr Mahathir, who is Proton adviser, said the company is looking at partnerships in China to start producing the cars soon.

  Proton has been in China since 2007, under a strategic partnership with Youngman Automobile Group, where it receives royalties from the Chinese company in exchange for the usage of its engines.

  Proton,  a wholly-owned subsidiary of DRB-HICOM Bhd, owns 100 per cent of Norfolk-based Group Lotus Plc which sold about 150 cars last year in China.

  "The presence of Lotus in China will contribute to developing Proton in the Chinese market. However, to enter the Chinese market, we need to manufacture the cars in China and that will involve huge capital investments. We are looking at partnerships," Dr Mahathir  he said, after opening the first Lotus 4S (sales, service, spare parts and system) centre, here, on Tuesday.

  Present were DRB-HICOM controlling shareholder Tan Sri Syed Mokhtar  Albukhary, DRB-HICOM group managing director and Proton chairman Tan Sri Khamil Jamil, Lotus chief operating officer Aslam Farikullah, Proton covering chief executive officer Datuk Abdul Harith Abdullah, wife of the Malaysian Ambassador to China Datin Rahmah Mohd Lajis and vice-president of Chinese People's Institute of Foreign Affairs, Ambassador Peng Keyu.

  Aslam said that Lotus, which has eight dealerships across China, aims to sell 200 units this year.

  He said the 4S centre, which houses four floors at the Golden Port Motor Park, here, will help Lotus achieve its sales target this year.

  Globally, Lotus is targeting to sell 2,500 cars.

  "We are expanding in China, which has the world's largest automotive market, and huge demand for expensive and high performance cars. We are targeting people who enjoy fast cars.

  "The 4S centre is the starting point for us in China. We will also set up a driving academy here to allow people to test drive the cars first," he told reporters, adding that the investment for the centre, including the setting up of another facility in Beijing, is US$17 million (RM56 million).

  Aslam said the centre will also offer a complete Lotus experience with a showroom that provides comprehensive services.

  "We have been receiving positive demand for Lotus cars in China, hence there is a need for Lotus to position itself strategically and it is only fitting that these valued customers are able to enjoy the level of services and comforts that befit the brand's iconic status," Aslam said.

  Lotus sells the Evora S IPS, Exige S240, Exige S260 and the Elise CR in China, and there are plans to launch new models this year, he said.