Proton says it is not quitting SA

Proton SA denies it is exiting the local market, despite recent media speculation.

Sammy Ranjeeth, Proton SA’s PR manager, said reference made by Combined Motor Holdings (CMH) CEO Jebb McIntosh during a recent results presentation was in relation to stock liquidation of ageing inventory in a difficult and competitive market.

“This was a standard industry practice to prepare for the arrival of exciting new models,” said Ranjeeth.

Proton, founded in 1983, previously imported models including the Gen-2, Satria Neo, Saga, Savvy, Persona and Arena bakkie to SA, but quit the country in 2012. It made its comeback in 2022, teaming up with CMH to import and market the Malaysian brand.

The brand returned under new ownership after being purchased in 2017 by Chinese automaker Geely, which also owns Volvo and Lotus, and is a significant shareholder of Mercedes-Benz. 

With “affordable luxury” as its catch phrase, Proton initially launched two SUV ranges - the X50 and X70 - and proclaimed they were being aimed not at Chinese rivals such as GWM and Chery but at legacy brands such as Volkswagen, Mazda and BMW. It later bolstered its line-up with the X90 seven-seater SUV and the Saga entry-level sedan.

However, Proton’s sales have failed to make a dent against a proliferation of more price competitive Chinese and Indian brands. Proton sold only 66 cars last month compared to GWM (1,943), Chery (1,852) and Mahindra (1,278).

Last week BusinessLIVE reported McIntosh said the partnership with Proton had been “challenging” and the parties were reassessing their options.

“The Proton import and distribution operation has continued to be challenging and costly. Current inventory will be sold during the first half of the coming year, and thereafter the group and the Malaysian manufacturer will decide on the way forward,” McIntosh said in his letter to shareholders published in the group’s annual report.

CMH, which has 43 retail motor dealerships representing 29 brands sold through operations in Gauteng, KwaZulu-Natal and Western Cape, said imports, particularly from China and India, had made the market very challenging to compete in.

Ranjeeth this week said Proton has no plans to leave and is reaffirming its long-term commitment to the local market.

“Proton is strengthening its home market presence by preparing to launch new-generation vehicles, including compact sedans, hatchbacks and competitive B-segment SUVs with internal combustion and hybrid powertrains,” Ranjeeth said.

Every Proton X-Series model in SA is backed by a five-year unlimited kilometre warranty, with 24/7 nationwide roadside assistance throughout the full warranty period, she said.