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Published on December 3, 2007

With another launch planned for January, Proton's domestic market share is expected to continue to strengthen, boosting its chances of returning to the black in the current year ending March 31.

For the quarter just ended, Proton posted a net profit of 3.5 million ringgit (Bt35.2 million) on revenue of 1.3 billion ringgit, compared with a loss of 250 million ringgit on a turnover of 1.27 billion ringgit a year earlier.

The turnaround was aided by a one-time gain of 46 million ringgit from writebacks made on product development.

"It is a small profit, and we are still not out of the woods yet," chairman Mohamed Azlan Hashim told a news briefing on the group's latest results.

"The Persona is an early indication Proton has begun to meet the expectations of the market," Azlan said.

The sedan, unveiled in mid-August, is already proving to be Proton's best bet to win back market share from its domestic rival Perusahaan Otomobil Kedua, or Perodua.

In less than four months, the Persona has attracted about 23,000 bookings and is already Proton's best-selling car this year.

The strong numbers boosted Proton's market share, from 26.5 per cent in the three months to June 30 to 33.1 per cent in the quarter under review.

Proton sold 34,320 units in the three-month period just ended, compared with 28,145 in the preceding quarter.

The bigger sales volume helped reduce inventory and generated more cash for the company.

"A strong domestic order book, an anticipated launch of an entry-level model [in January 2008], aggressive stance on exports and continued execution of cost-reduction initiatives will hold the group in good stead for the rest of the financial year," managing director Syed Zainal Abidin Mohamed Tahir said.

At the briefing, Syed Zainal gave a sneak preview of Proton's strategy to become a regional carmaker, aiming to derive half its sales volume from overseas by 2011. "The Asean region will be key to Proton's export strategy in the coming years," he said, adding that the group planned to produce more models aimed at the mass market based on fewer platforms to cut costs. It intends to set up production plants in China, India and the Middle East by 2016.

Syed Zainal said Proton viewed exports as the way forward, and was pursuing focused strategy targeting key markets in the Asean region, China, India and the Middle East.

Already, the export deal to send 30,000 GEN.2 cars to China, that was sealed recently, has almost matched the total export volume of the past two years.

The Star

Asia News Network

Kuala Lumpur