Latest Proton Saga to be assembled in Egypt

Back in the 1960s, foreign automakers set up factories in Malaysia to assemble some of their products, allowing them to enjoy the benefits given by the government for their investments. In setting up the assembly plants, they also created jobs and transferred technology for the young Malaysian auto industry.

In less than 20 years, it became possible for Malaysia to start developing its own national car which led to the establishment of Proton. From then on, the national automaker helped to develop the auto industry further as well as introduced the Malaysian car brand to the world.

Then with its experience, Proton also began to do the same thing that foreign automakers had done in Malaysia – it began assembly of some models in other countries. Some of the ventures did not last long due to various factors but nevertheless, it showed that Proton was a full-fledged automaker like other global players.

Local assembly complements export push
Today, complementing its export push, Proton has also been looking at local assembly of some models in markets where it would be advantageous, ie enjoying the same sort of preferential tax incentives that were given to foreign automakers when they assembled in Malaysia.

In 2020, assembly operations began in Kenya and the following year, in Pakistan as well. Now Egypt also joins the list of markets where Proton models will be assembled. The first CKD (completely knocked-down) packs for 120 Sagas were despatched today at a special ceremony held at Proton’s Centre of Excellence and head office complex.

US$15 million investment
The cars will be assembled from December this year at an assembly plant owned by Ezz Elarab Elsewedy Automotive Factories (ESAF). The assembly operation is a joint venture between Elsewedy Capital and automotive group Ezz Elarab which is said to have an investment of US$15 million (about RM65.6 million). The targeted volume of locally-assembled Sagas for 2025 is expected to grow to 5,000 units.

Lefthand drive variant
Incidentally, the cars are lefthand drive versions as motorists drive on the right side of the road in that country. Lefthand drive variants are not new to Proton and in fact, the first Saga was also made with lefthand drive within the first few years of production starting in 1985. Some units, fitted with Mitsubishi 1.8-litre engines were sent to the USA for display at the Las Vegas Auto Show in the late 1980s as well.

There have also been lefthand drive variants of the Wira for export markets such as the Philippines (where they were assembled at one time) and some European countries in the 1990s.

Proton in Egypt
The Proton brand has been present in the Egyptian automotive market with its partner, Ezz Elarab since 2004 (although there were exports earlier, with over 1,500 units up to 2001). Over the past 20 years, nearly 17,000 cars have been exported to Egypt and this year, over 1,400 units are expected to be added to that number. The Proton brand is thus well known in that market and in fact, there is even an owners’ club for the Gen2.

“Assembling the Proton Saga in Egypt allows the company to meet the aim of the Egyptian government which is encouraging local assembly activities while limiting the number of CBU (completely built-up) imports. This, in turn, creates the potential for greater future capacity expansion in the country, especially after we launch new models, with the aim to make Egypt the hub for Proton vehicle exports in the North African region,” said Steven Xu, Director of International Sales at the Malaysian automaker.

Exports currently 3% of total sales
“Proton is the leading exporter of vehicles in Malaysia and while our current volume is approximately 3% of our total sales numbers, efforts are being made to increase that number by focusing on multiple core areas,” added Mr. Xu.

He said that Proton will engage with its vendors to reduce component costs and while also inviting them to collaborate with companies in other countries to develop supply chains for our overseas production activities. “This will pay dividends in the long term not only for the company and its vendors, but also for the development of the automotive industries in these foreign markets,” said Mr. Xu.

Proton sales keep growing at home and overseas