Proton takes 74.5% of the local market

Proton takes 74.5% of the local market

KUALA LUMPUR (AFP): Malaysia's national car Proton has raised its share of the domestic car market to 74.5 percent in the first six months of the year as an upbeat automobile industry saw overall sales rising 5.8 percent.

Proton sold 44,949 cars to once again take command of the market, with Japanese make Honda coming second with 4,843 units or eight percent, tailed by Nissan with 2,360 units or 3.9 percent and Toyota's 2,242 units or 3.7 percent.

Proton, which increased its sales by eight percent during the period, had cornered 72.6 percent of the local car market in the previous corresponding period.

In the half year to June, Ford took fifth spot with 1.6 percent, Volvo 1.4 percent, Mercedes Benz 1.3 percent, Peugeot 1.2 percent, Citroen 1.1 percent and Daihatsu one percent, according to figures released by the Malaysia Motor Traders Association (MMTA) Saturday.

"We are confident that our forecast for a 10 percent growth this year is achievable, MMTA chairman Aishah Ahmad said.

Total sales of motor vehicles increased 5.8 percent to 77,641 units from 73,408 units during the same period of last year, Aishah said.

The more competitively priced Proton is now going places as it prepares to penetrate more markets in Southeast Asia, including the Philippines, Indonesia and Vietnam, after having penetrated 18 countries, including Britain.

Japanese models have lost out due largely to rising cost attributable to the strengthening of the yen against the ringgit, officials said.

Proton, launched nine years ago through a joint-venture with Japan's Mitsubishi group and state-owned Heavy Industries Corporation of Malaysia (HICOM), has over the years been gradually eroding the market shares of Japanese cars in the domestic market.

Mitsubishi Motor Corporation and Mitsubishi Motor hold 17 percent stake in the Proton venture, a cornerstone of Prime Minister Mahathir Mohamad's ambitious plan to make Malaysia an industrialized nation. The national car company is now listed on the local bourse.