Proton to start production in RI<\/p>\n
The Star\/Asia News Network, Kuala Lumpur<\/p>\n
PT Proton Tracoma Motors is expected to produce about 5,000 units
\nof Wira cars this month, a source familiar with the deal said.<\/p>\n
The Indonesian company, which is a 51:49 joint venture between
\nProton Holdings Bhd and auto parts supplier Tracoma Holdings Bhd,
\nowns an assembly plant in Cikarang, east of Jakarta.<\/p>\n
The source said the new cars would cater mainly for the taxi
\nmarket in Indonesia, which has a huge potential due to the
\nincreasing demand for replacement of old taxis.<\/p>\n
Prices of the cars were likely to be very competitive, he
\nadded.<\/p>\n
PT Proton Edar Internasional Indonesia, a 95 percent-owned
\nunit of Proton Edar Sdn Bhd, was already aggressively marketing
\nthe cars as well as beefing up its distributorship presence in
\nthe country, the source said.<\/p>\n
The Indonesian plant, which is an important investment for
\nProton, takes advantage of the lower tariff arrangements under
\nthe ASEAN Free Trade Area.<\/p>\n
The more competitively-priced Proton cars produced in
\nIndonesia, compared with Malaysian-made units, are expected to be
\nused to penetrate other Asean markets like the Philippines and
\nThailand.<\/p>\n
For the first six months of operations, the Cikarang plant is
\nexpected to focus on the production of Wira for the Indonesian
\nmarket, following which, it might expand the production to the
\nGEN.2 and Arena models.<\/p>\n
The Cikarang manufacturing facility has an estimated annual
\nproduction capacity of 50,000 vehicles, which can be assembled
\nfor both domestic and export markets.<\/p>\n
In light of the increasingly competitive domestic market,
\nProton had so far made several efforts to widen its revenue base.
\nLast year, it bought a controlling stake in Italy-based MV Agusta
\nMotor spa, the producer of MV Agusta, Cagiva and Husqvarna
\nmotorcycles.<\/p>\n
The national car maker also formed a long-term strategic
\nalliance with Volkswagen Aktiengesellschaft of Germany.<\/p>\n
Proton is likely to see the results of its consolidation
\nefforts this year.<\/p>",
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