The entry of Proton cars is a positive sign for the local auto sector

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The national automaker of Malaysia, Proton is all set to enter the local auto sector of Pakistan and it’s currently seen as a huge development by the Advisor to Prime Minister on Commerce, Industry and Investment Abdul Razak Dawood.

According to the details, the Malaysian auto manufacturer has collaborated with Al-Haj Group for manufacturing its cars in Pakistan. Under the Auto Development Policy (ADP) 2016-21, Al-Haj Automotive acquired Greenfield status from the government to manufacture Proton cars in the country. The auto policy has invited several local and foreign investments as it offers tax-based incentives to the new auto players in the market. The policy was also aimed to attract new automakers to enhance the competition in the local industry so that the consumers get the benefit of choosing from a wide range of vehicles in the market. The local sector has been dominated by only three Japanese auto giants i.e. Suzuki, Toyota and Honda for over several decades. As of now, new players including KIA, Hyundai, Prince, United, etc. have added more choices and alternatives for the consumers. As a result of this development, Proton cars are also ready to make their debut in Pakistan. This entry of Proton is highly anticipated as Pakistan looks forward to building strong relationships with Malaysia for future investments too.

Recently, the gift of Proton X70 SUV from the Prime Minister of Malaysia Dr. Mahathir Mohammad to Imran Khan also reached Pakistan which was received by the advisor on PM’s behalf. The formulation of plans for the assembling of several models of Proton in the country is currently under process and according to the Advisor, the production activities of the automaker are scheduled to commence in 2021. The production plant, however, is expected to be established by June 2020. The shift of the Malaysian car unit to Pakistan will help the automaker in achieving its long-term goals as well. The company is looking forward to exporting its vehicles as well as manufacturing them in other countries to achieve the target of selling 400,000 vehicles by 2027. He further said that there is so much more the two Muslim countries can share in terms of technology. Its collaboration with the Al-Haj Group will be a gateway to more investments in the future. Note here that Al-Haj has already produced FAW cars in Pakistan which makes the group a well-known and reputable name in the local auto sector.

The government is focusing on offering attractive investment opportunities to both local and foreign investors in the auto industry. To further uplift the local auto sector, the government has also recently approved the first-ever electric vehicle (EV) policy that will revolutionize the entire sector and help in saving the environment from the adverse effects of carbon emissions. It will also reduce the annual oil import bill to a great extent.

Apart from its X70 SUV, it will be interesting to see which cars the auto manufacturer will introduce in Pakistan. Proton Saga is another hot-selling car of the automaker as it’s considered as the driving force of the company’s overall sales. Nonetheless, the consumers will be in a win-win situation as Proton cars will add more choices for them. The monopoly of a few automakers in the country will not prevail anymore. The pricing of the vehicles of the new automaker will also play a key role in determining the success of Proton. The competition will only rise if new players introduce their cars at lower prices with improved quality as compared to the existing models. On the other hand, let’s hope the government now finally takes notice of the unnecessary price hikes in the products of the local auto manufacturers. Share your thoughts in the feedback and stay connected with PakWheels for more updates related to the automobile industry.

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1 Comment
  1. Salamn says

    If they price Saga reasonably it will be the cheapest sedan in Pakistan that is high quality. In Malaysia it is the cheapest Sedan and has been doing well since the launch of facelift.

  2. AbdulB1 says

    better to just import geely electric vehicles… after all 50 percent of proton is owned by geely

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