National carmaker Proton plans to begin assembling and selling its medium-sized Wira model in Indonesia early this year in a fresh attempt to bolster falling sales.

Most of the Indonesian-assembled Wira cars will be used as taxis in Indonesia, the Malay Mail newspaper said.

Quoting unnamed sources, the afternoon daily said Proton's Indonesian unit, PT Proton Edar Indonesia, was holding negotiations with some 10 taxi operators in the capital Jakarta and Makassar.

In 2001, Proton signed a deal with PT Ningz Multiusaha to assemble and distribute Proton cars in Indonesia. Proton has a 70 percent stake in the company.

RM132 million investment

The Malay Mail said the joint-venture company had invested RM132 milllion (US$35 million) in its plant at Cikarang.

Proton suffered a net loss of RM154.33 million ringgit for the second quarter to September, reversing a profit of RM198.91 million a year earlier.

Proton used to sell six out of every 10 new cars in Malaysia but sales have been tumbling for the past few years as the national automaker feels the bite of growing foreign competition while the government whittles away protection.

From a market share of 60 percent in 2002, Proton saw a decline to 48 percent in 2003 and then 44 percent in 2004.