Malaysian carmaker Perodua has overtaken its lumbering competitor Proton to become the nation's leading manufacturer thanks to a nifty new model, industry experts said today.

The development is the latest blow for Proton which is struggling to survive in the face of competition from foreign automakers as well as more nimble Malaysian producers like Perodua and Naza.

The Malaysian Automotive Association said that after jockeying for position in recent months, Perodua outpaced Proton to sell 13,574 cars in April, a 44 percent market share against Proton's 9,290 cars sold for a 30.35 percent market share.

Deputy Prime Minister Najib Razak said the development, which observers credited to the success of Perodua's new compact Myvi model, should "spur Proton to do even better in the future".

"We like this sense of competing with one another in a friendly manner. I think that's good for the consumers," he told reporters at an automotive conference.

Najib said both manufacturers should now redouble their efforts to crack the export market which they have so far failed to penetrate.

"It is obvious that they need to go abroad. The local market is the biggest passenger market in Asean but it is not enough for us to sustain," he said.

Proton's market share has fallen steadily in recent years due to the whittling away of import duties, and a persistent reputation for poor quality and unimaginative models.

Savvy ignored

In a telling tale, Proton's new Savvy model launched a year ago has been ignored while Perodua's Myvi with its better looks and high-quality interior has a nine-month waiting list and is outselling the Savvy by six to one.

"Most people perceive the Savvy as less reliable, more problems with the quality. It's all hearsay though, possibly because of previous Proton models being that way," said AmResearch analyst Gan Kim Khoon.

"They (Proton) don't need us to tell them to buck up, they can see the numbers themselves. I'm sure they are monitoring the numbers very closely."

Primary national carmaker Proton was set up in 1983 as part of Malaysia's drive into heavy industry, while Perodua began operations in 1995 as a producer of small and fuel-efficient compact models.

Japanese small-car maker Daihatsu Motor Co Ltd, which is a subsidiary of Toyota, owns a 51 percent stake in Perodua.