National car-maker Proton does not see a pressing need to form alliances with foreign automakers as it prepares for the opening of the domestic car market by 2005, a report said today.

There was little incentive for a tie-up as Proton would have to pay high engine costs and amortisation charges to its foreign partners, Perusahaan Otomobil Nasional Bhd. (Proton) chief executive Mahaleel Ariff was quoted as saying by The Star .

"Where is the value from foreign alliances going to come from? They cannot give any value in terms of economies of scale. The alliance can o­nly be for us to assemble for them and make money from it," he said.