(AFP) Prime Minister Dr Mahathir Mohamad today unveiled Proton's new mini multi-purpose vehicle which features Lotus engineering input.

Proton launched the Juara model, costing RM49,203, as part of its efforts to widen its product range to prepare for the ASEAN Free Trade Area (AFTA).

Mahathir said he expects impressive consumer demand for the model, saying the young and the adventurous would purchase the vehicle.

"It is an unique model. It can be used for many purposes," Mahathir said at a press conference.

Proton expects to sell 5,000 to 6,000 units by year-end and commence exports within three years.

The company has more than 65 percent of the local market due to high tariffs on imported cars.

This protection will largely disappear by 2005 under AFTA rules which specify that tariffs must be no more than five percent from 2003. Malaysia has obtained a reprieve for its auto industry until 2005.

Annual product

Proton chief executive officer Tengku Mahaleel Tengku Ariff predicted good sales because of what he said was the car's affordability, safety features and performance.

"We are confident Malaysians will take to Juara."

Tengku Mahaleel said Proton would produce at least one new model every year.

Last May, Proton launched the first locally designed car, Proton Waja, which was aimed at spurring exports and competing with other big-league manufacturers.