Zafrul: Geely partnership lifted Proton from losses to profitability

Investment, Trade, and Industry Minister Tengku Zafrul Abdul Aziz has credited the strategic partnership with Chinese automobile manufacturer Geely for transforming Proton from financial losses to profitability.

In a parliamentary written response, he highlighted how the collaboration, which began in 2017 with Geely acquiring a 49.9 percent stake in Proton Holdings Berhad, has fundamentally reshaped the national car manufacturer.

Zafrul said that Proton was running on losses for four years from 2012 till 2016, before the partnership with Geely turned it around for the better.

He said the collaboration has enabled crucial technology transfers, including advanced automotive platforms, energy-efficient engines, and electrification systems that have modernised Proton’s vehicle lineup.

Zafrul said Proton’s vehicle sales more than doubled from about 71,000 units in 2016 to over 152,000 units in 2024.

“In line with this, Proton’s market share also shows a positive trend, increasing from approximately 12.5 percent in 2016 to around 18.7 percent in 2024.

“This increase was driven by the launch of new models that are more competitive, particularly in terms of technology, design, and price value, such as the X70, X50, X90, and S70 models.

“In addition, two Geely electric vehicle (EV) models are in the process of local assembly for the domestic and regional markets,” he said.

Zafrul was replying to Siti Mastura Muhammad (PN-Kepala Batas), who asked him to state Geely’s role in helping to develop Proton domestically and regionally, and whether there is a joint venture agreement between these two vehicle manufacturers.

Beyond domestic success, the minister said that the Geely partnership also opened new export opportunities across Southeast Asia and beyond.

He said export volumes have surged by 316 percent, from 1,145 units in 2018 to over 4,765 in 2024, with key markets including Pakistan, Brunei, Bangladesh, Mauritius, and South Africa.

“Since cooperating with Geely, to date, Proton has implemented several important investments with a total investment estimated to exceed RM4.71 billion.

“This investment includes infrastructure improvements, including EV plant development, construction of new stamping line and powertrain assembly facilities, technology development to enhance technical capabilities and production efficiency, workforce training and investment for R&D activities aimed at driving product innovation, as well as new technology development to support the production of future vehicle models,” Zafrul explained further.

He said that the partnership, which began via a share ownership agreement signed on June 23, 2017, has also opened opportunities for Proton to utilise Geely’s capabilities, including its automotive technology, management systems, vehicle design, as well as global supply networks.

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