Ailing national carmaker Proton Holdings posted more red ink Tuesday, with a RM58.6 million loss in the first quarter to June.

The result came after a RM12.35 million loss in the same quarter a year ago, it said. Sales slumped to RM1.42 billion against RM2.05 billion a year ago.

Proton has slipped in and out of profit over the past year, as it struggles to reverse a steady decline in market share as foreign competitors woo Malaysian drivers.

It blamed the latest poor result on declining car sales in Malaysia and a lack of new models, with the next contenders due to hit the streets only next year.

"While overall industry sales have dipped, Proton has been affected mainly by the lack of new car models. The bulk of our models have been in the market for several years now while the market is seeking something more fresh and exciting," said managing director Syed Zainal Abidin Syed Mohamed Tahir.

Proton's latest models are the Savvy ( left ), launched last year with disappointing results, and newcomer Satria Neo which was unveiled recently.

In the first quarter, Proton's sales stood at just 32,200 units compared to 44,367 in the same period last year, it said.

"The drop in auto purchases is proportionate to industry trends, where sales across the board declined by five percent in the first half of the year against a year earlier," it said.

Dismal end

The carmaker saw a dismal end to its financial year on May 30, posting profits of RM47 million, just one-tenth of the earnings recorded in the previous year.

The company has admitted intense competition in domestic and export markets has put pressure on sales and profitability. It has said it will launch six new models over two years to arrest declining sales.

Proton's national market share declined to 41 percent in 2005 from 60 percent in 2002.

Former prime minister Dr Mahathir Mohamad, who was responsible for launching Proton in the 1980s, warned this year that its share could plunge to as low as 10 percent if the government did not step in to better regulate imports.

Proton struggles with a reputation for producing shoddy and unimaginative models, and as the government whittles away protection, foreign imports have become even more attractive.