(AFP) Malaysian carmaker Proton will launch its Waja model in the British market early July in a move to expand exports and woo younger customers, a company official said today.

The Waja, introduced last year in Malaysia, would be renamed the Impian (Dream car) and priced at around 12,000 pounds (US$17,179), said Colin Low, managing director of Proton Cars (UK) Ltd.

Proton aims to sell an initial 1,500 Wajas, Malaysia's first fully locally-designed car. Sales were expected to rise by 1,000 units for each year after, Low told AFP .

Apart from Malaysia, the Waja is currently only available in Singapore and Brunei.

Britain is Proton's single largest export market, accounting for some 6,000 cars annually. Apart from the Waja, other models sold there are the Wira and the more sporty and up-market Satria GTi launched two years ago.

Low said the Satria and Waja would help Proton change its image as a "value-for-money and cheap" car attracting older buyers.

"We need to change our image and associate Proton with younger owners who seek driveability and the right handling," he said.

Proton, which now has some 100 dealers in Britain, would appoint 60 new dealers this year to boost sales, he said.

Proton in 1997 bought an 80 percent stake in Britain's Lotus Engineering Ltd. Earlier this year, it said it would jointly produce a high-performance model with Lotus due to be launched in 2003.

Promotion

Earlier today Proton organised a tour of its plant in Shah Alam for 80 Malaysian diplomats.

Proton chief executive Mahaleel Ariff urged them to promote the cars overseas and help change Malaysia's image as a "third-world country that only subcontracts chips and assembly."

"Our biggest challenge is the perception outside Malaysia that we are not advanced and therefore not capable of making such things as cars and engines," he said.

Mahaleel said the Proton group, including Lotus, spends some RM1 billion ringgit (US$263 million) on engineering research and development annually.

"Currently the products we sell in the Europe and the United States are not competitive from the technology and styling point of view. We need to have new products," he said.

Mahaleel said Proton would boost exports before the ASEAN Free Trade Area comes into force.

"In the next 44 months, we are going to produce our own engine. This engine will be very advanced and cost-competitive and this means the cost of the (car) can be competitive," he added.

Under the Association of Southeast Asian Nations (ASEAN) Free Trade Area, most members must cut tariffs on imports to a maximum of five percent by 2003.

Malaysia has obtained a reprieve for its auto industry until 2005.

Proton, founded in 1983 as part of Malaysia's push into heavy industry, is protected by high tariffs on imported cars.