since 1976
since 1976
National carmaker PROTON took another step towards expanding its footprint in international markets by announcing the start of CKD operations in Egypt. The announcement was made during an event at PROTON’s Centre Of Excellence headquarters, which was highlighted by a flag off ceremony to send 120 units of left hand drive (LHD) Proton Saga CKD packs to the country.
The event was attended by H.E. Ragai Tawfik Said Nasr, Ambassador of Egypt to Malaysia, and Datuk Hanafi Sakri, Deputy Secretary General (Industry), Ministry of Investment, Trade, and Industry, who were hosted by Tan Sri Syed Faisal Albar, Chairman of PROTON. Also in attendance were Roslan Abdullah, Deputy Chief Executive Officer, PROTON, Amr Abou-Elseoud, Board Member of Ezz Elarab Elsewedy Automotive Factories, Egypt, and Steven Xu, Director of International Sales, PROTON.
Following the event, PROTON’s Deputy Chief Executive Officer, Roslan Abdullah, said, “Export sales are an important area of focus for PROTON in our efforts to achieve our long term goals. As the Malaysian automotive market reaches a natural saturation point, future volume growth potential will come from overseas markets where consumer demand is expected to be on an upward trend in the future. The addition of CKD operations in Egypt brings the number of plants involved in CKD and SKD activities for PROTON outside of Malaysia to five.”
New CKD plant has potential to turn Egypt into regional hub for Proton models
The Proton brand has been present in the Egyptian automotive market with its partner, Ezz Elarab since 2004. Overall, nearly 17,000 CBU units have been exported to the country in that time and in 2024, it is forecast that over 1,400 units will be shipped there. With the local assembly targeted to start in December this year at an assembly plant owned by Ezz Elarab Elsewedy Automotive Factories (ESAF), the targeted volume for 2025 is expected to grow to 5,000 units of the Proton Saga.
“Locally assembling the Proton Saga in Egypt, allows the company to meet the aim of the Egyptian government to limit the number of CBU imports into the country while also encouraging local assembly activities. 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, PROTON.
For the first three years up to the end of 2026, revenue earned by PROTON from the export of CKD packs to Egypt is forecast to be RM570 million with a further RM20 million projected as revenue from parts export activities. At the same time, the local Egyptian economy is expected to earn up to RM180 million in duties and taxes on the assembly of Proton vehicles in the country.
“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. For instance, PROTON 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,” added Steven Xu.
