Malaysia's national carmaker Proton will begin producing sports utility vehicles and people-movers within two years in a bid to claw back falling market share, a senior official said today.

Proton's manufacturing director Kamarul Zaman Darus said the company was developing SUVs and multi-purpose vehicles (MPVs) for the local market as well as to try to crack the elusive export market.

"We are currently developing a product that the market wants... which is the SUV and other products too," told reporters at an automotive conference.

People-movers and SUVs are among the fastest growing segments in Malaysia and other Southeast Asian nations, and Kamarul said Proton which currently offers only compact and sedan models could not afford to miss out.

"We are right now in the midst of developing various products in the various segments. Today... the growth is very high on MPVs and SUVs so we are certainly looking at that," he said.

"It would not make much sense that if we are not in that segment."

The barely profitable Proton is saddled with a reputation for producing shoddy and unimaginative vehicles. It has been fighting a steady decline in its market share which plunged to 41 percent in 2005 from 60 percent in 2002.

New models

Kamarul said the company was at a crossroads, but insisted it was on the right path and starting to target high-growth market areas.

He said Proton had already started developing the new models and researching possible market share, but declined to give a date for the vehicles to hit the road.

"I can assure you that we are developing products, and in the normal course of the business, the market certainly would like a product as soon as possible. We are thinking, 24 months, if not less," he said.

Kamarul said the the company would develop the new models with assistance from a strategic partner, in line with its policy of forging alliances with foreign automakers.

Proton also said Wednesday it is in talks with Chinese manufacturer Chery on a deal to assemble and distribute Proton and Chery models in China, Malaysia and elsewhere in Southeast Asia.