Proton to launch one model a year

Proton to launch one model a year

KUALA LUMPUR (AFP): Malaysia's national carmaker Proton will introduce at least one new model a year to prepare for the opening in 2005 of the regional auto market, a report said on Thursday.

Tengku Mahaleel Ariff, chief executive of Perusahaan Otomobil Nasional Bhd. (Proton), said in an interview with the Star newspaper the company aimed to seize a larger share of the Southeast Asian market.

In a separate statement Proton announced price rises for two of its older models -- the first increases for five years.

Proton now has more than 65 percent of the Malaysian market due to high tariffs on imported cars. This protection will largely disappear in 2005 under the ASEAN Free Trade Area (AFTA).

Mahaleel said Proton could compete effectively in an open market because it had developed its own technology and design capabilities. This was evident in last year's launch of the Waja which was fully designed by its own engineers.

"We will give you one new model a year. We gave you the Perdana V6 and Satria GTi in 1998, the Waja in 2000 and this year there will be more," he told the Star.

"We have said we are looking at introducing a van. We also have plans to create some other unique vehicles.

"We will also go out of Malaysia more to take the markets in ASEAN (the Association of Southeast Asian Nations). That is what we have to do with AFTA."

Under AFTA tariffs will fall to zero to five percent at the start of 2003. Malaysia has obtained a reprieve for its auto industry till 2005.

Mahaleel said Proton's purchase in 1997 of an 80 percent stake in Britain's Lotus Group had boosted development of its own technology.

Proton said in a statement the price of the 1.3 and 1.5 liter versions of the Iswara and Wira was increased by between 1,400 and 3,200 ringgit (US$368 and $842) effective Jan. 31.

"Proton has not raised its selling price in the last five years despite rising costs, so as not to burden consumers during the economic crisis which affected the country," said its operations director Kisai Rahmat.

The Iswara and Wira were launched in 1992 and 1993 respectively.

Proton was founded in 1983 as part of Malaysia's push into heavy industry.

Prime Minister Mahathir Mohamad has said the government is prepared to authorize the sale of up to 30 percent of Proton and that a U.S. car manufacturer has expressed interest.