The first Proton Sagas hit the streets in 1985, when Malaysia was going through a recession. In that year, the national car company produced 17,000 cars. By 1993, production had reached 500,000 units.
Although Proton certainly saw many ups and downs in production, sales volumes and market share, it endured as a national car company, eventually exporting to more than 50 countries.
Critics say Proton survived only because of government intervention through subsidies for the company and tariffs that price other cars out of the reach of most Malaysians.
But then, just three years after it entered the market, the company bagged three prestigious awards for quality, coachwork and ergonomics at the British International Motorshow. However, many Malaysians were not impressed. The perception was that there was something lacking in the version sold in the domestic market compared with the export model.
Still, people were buying the Proton Saga in record numbers since it was the most affordable car on the market.
In 1992, the company produced its second model, the Proton Iswara, which was seen as nothing more than a variation of the Saga. But a year later came the sporty and more rugged looking Proton Knight. At about the same time, the very popular Proton Wira was launched. Its smooth lines and low-slung profile attracted many new buyers.
The momentum continued with several significant new models in the mid-1990s, such as the Perdana, Tiara, Wira 2.0 Diesel, Satria and the two-door Putra.
Sales picked up around this time and, with increased profits, Proton stepped up its recruitment.
Seeing a future of continuous growth, Proton built a second plant, said to be at a cost of RM3.4 billion, in 2000. With that, it was able to triple its production capacity.
In the same year, it acquired 80% of Group Lotus, valued at £51 million (more than RM245 million).
However, since 2006, not only have Proton’s sales slumped against second national car manufacturer Perodua, it has also failed to outperform foreign brands.
To make things worse, a potential deal with one of the world’s largest car manufacturers, Volkswagen Automobile, turned sour.
Proton and Volkswagen had signed an agreement in October 2004 to explore long-term strategic collaboration. However, the deal did not materialise. The foreign carmaker called it off over a disagreement on the company’s ownership.
Proton parent DRB-Hicom’s sale of 49.9% of the company to Chinese carmaker Zhejiang Geely Holding Group has received mixed reactions amid fears over the fate of the local auto parts industry.
It is known that Proton has developed about 400 vendors and sub-vendors and more than 350 sales and services outlets.
Geely, the parent company of Hong Kong-based Geely Automobile Holdings Ltd and Sweden’s Volvo Car Group, also acquired 51% of Proton unit Lotus.
Ivy Chong contributed to this article.