This article first appeared in The Edge Financial Daily on July 11, 2018 - July 17, 2018

KUALA LUMPUR: Proton Holdings Bhd remains on track to launch its first sport utility vehicle (SUV) model, Boyue, which will be built using Chinese technology in collaboration with Zhejiang Geely Holding Group, by the fourth quarter of 2018 (4Q18), said its chairman Datuk Seri Syed Faisal Albar.

According to Proton’s internal plans, Syed Faisal said, the launch of the SUV, which is hailed as a game changer for Proton, could take place as early as September or October.

Syed Faisal said launching the SUV is part of the plan to turn around Proton, which booked a net loss of RM1.46 billion for the financial year ended March 31, 2016.

“We have put in place the models we are going to introduce, particularly the SUV, by the end of the year,” Syed Faisal told reporters after meeting with the five-man Council of Eminent Persons (CEP) at Menara Ilham yesterday.

The carmaker’s plan to roll out Boyue was part of the deal inked in June 2017, between its parent DRB-Hicom Bhd and Geely for the sale of a 49.9% stake in Proton to Geely for RM460.3 million.

“Boyue has been tested and tried by [Prime Minister] Tun Dr Mahathir Mohamad. He was happy with it, and we take it as an indirect endorsement and confidence in Geely’s technology,” Syed Faisal added.

The launch of Boyue is expected to rival other midsize SUVs in the market, such as Nissan’s X-Trail, Honda’s CR-V and Mazda’s CX-5.

As for Proton’s market share, which was hovering at around 10% as of June, Syed Faisal said: “It is not an issue for us now. Proton needs to focus on what it can produce by the end of this year,” he added.

Meanwhile, Syed Faisal said Geely has expressed its interest in hosting Dr Mahathir in his upcoming visit to China, which is slated to be in August.

“It will be a good opportunity for Geely to showcase to our premier its capabilities and strength, as well as the technology it can offer to the auto market,” he added.

Located in Hangzhou, Geely employs 80,000 staff and operates 850 dealerships across China, with 450 international sales and service points covering 40 countries. In 2017, Geely sold 1.25 million cars.

Last week, Dr Mahathir said he plans to visit China and meet with Chinese President Xi Jinping to raise and iron out various issues, particularly of the “unfairness” of various deals inked under the previous Barisan Nasional administration.

As for Dr Mahathir’s plan to create a new national car company, Syed Faisal said the government should continue to position Proton, which was established in 1983, as the national car company.

“We believe the confidence has to be in place for banks, vendors and dealers to ensure that Proton remains a national car entity,” he added.

Last month, Dr Mahathir, at the 24th International Conference on the Future of Asia in Japan, said that Malaysia is keen to establish a new national car company, which could be the third after Proton and Perusahaan Otomobil Kedua Sdn Bhd.

To kick-start the project, Dr Mahathir said Malaysia is seeking interested partners from neighbouring countries, such as South Korea, Japan and Thailand.

Meanwhile, Syed Faisal said, Proton is maintaining its stance that its vendors and dealers should slash prices of automotive parts by 30%.

Last year, Proton chief executive officer Dr Li Chunrong reportedly issued an ultimatum to them to cut prices of automotive parts by 30% by year end, failing which Proton would source its automotive parts from elsewhere.