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Proton, short for Perusahaan Otomobil Nasional (National Car Project), is a Malaysian car manufacturer initiated in 1983 by Prime Minister Mahathir Mohamad. The main plant is located in Shah Alam.
Based on technology and parts from Mitsubishi, production of the first model, the Saga, began in 1985. The car's logo featured the crest from Malaysia's coat of arms, featuring an Islamic crescent and a thirteen-pointed star, although this was not used in export markets. Proton now uses a logo featuring a stylized tiger head.
Initially the components of the car were entirely made of parts manufactured by Mistsubishi but slowly local Malaysian parts are being used as technology is transfered and skill is gained. Also, with the acquisition of Lotus technologies, Proton has gained an additional source of technologically challenging parts such as engines.
Proton currently holds a market share of over 60 per cent in Malaysia, but stands to lose ground in 2005 when AFTA mandates reducing import tariffs to a maximum of 5%. Proton acquired the British car manufacturer Lotus Cars from Bugatti in 1996.
The first Proton car model, Proton Saga, rolled of the assembly line in Shah Alam in September 1985. The 100,000th Proton Saga was produced in January 1989.
Proton Perdana was first produced in 1994, intended for higher end market.
In 1993 another model called Proton Wira was introduced based on Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998.
Proton Waja is the first car model designed internally by Proton. It is called Proton Impian in UK market.
The second generation, replacement model for Proton Wira is called Proton Gen.2. It was launched on 8 February 2003.
The company first began exports to other right hand drive markets like New Zealand and Ireland in the late 1980s, but it was much more successful in the United Kingdom where it was introduced in 1989. Advertised with the slogan Japanese Technology, Malaysian Style, Proton cars proved popular among budget-oriented motorists, and like Japanese and South Korean models before them, led to the demise of Eastern-bloc manufacturers such as Lada and Zastava.
Proton also exports cars to countries in Southeast Asia and Australia, and now produces models in left hand drive, for export to continental Europe. An entry into the US market was considered, following Hyundai's successful launch in the mid 1980s. However, exports never materialised, as the cars required hundreds of changes to meet American safety standards.
It is a company that can be used as a case study for rent seeking as tariffs on imported cars rose almost immediately following the formation of Proton. Also AFTA agreeements on relaxing entries into the ASEAN marketspace had exemptions specifically for Proton. The Malaysian government gained a three year exemption for Proton from 2002 to 2005 where entry tariffs had to be lowered to 5%.
List of Proton models in alphabetical order:
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