KUALA LUMPUR (May 26): DRB-Hicom Bhd (KL:DRBHCOM) said the partnership between its 50.1%-owned subsidiary Proton Holdings Bhd and China-based Zhejiang Geely Holding Group positions the national carmaker to better withstand intensifying competition in Malaysia’s automotive market, as an influx of Chinese brands reshapes the industry with aggressive pricing, rapid product cycles and advanced vehicle technologies.
Group managing director Tan Sri Syed Faisal Albar Syed AR Albar said Proton is accelerating product refreshes across internal combustion engine, hybrid and electric vehicle (EV) segments while leveraging Geely’s technological capabilities and global scale.
“DRB-Hicom is fortunate to have Geely as its technology partner,” Syed Faisal said after the group’s annual general meeting in Kuala Lumpur on Tuesday. Geely became China’s top-selling automotive group earlier this year, surpassing BYD.
He added that Geely’s portfolio of international marques including Volvo Cars, Lotus Cars, Polestar and London EV Company gives Proton broader access to engineering expertise, platform development and electrification technologies.
Syed Faisal described the automotive industry as “a long game”, saying incumbent global manufacturers such as Toyota Motor Corp, BMW Group and Volkswagen AG are likely to intensify competition as Chinese automakers rapidly gain market share across Southeast Asia.
As part of Proton’s longer-term electrification strategy, the company is ramping up production at its EV plant in Tanjung Malim, Perak, which began operations last year. The facility is operating at about 60% utilisation, with an annual capacity of 20,000 units that can be expanded to 45,000 units as demand grows.
Syed Faisal said Proton’s e.MAS lineup has gained traction domestically, with the e.MAS 5 currently Malaysia’s best-selling EV model.
The automaker is also expanding its export ambitions as Malaysia’s passenger vehicle market nears saturation. Proton currently exports about 6,000 vehicles to 18 countries and is targeting expansion into 32 markets, with exports projected to rise to 8,000 units.
Among recent milestones, Geely has decided to rebadge the latest Proton Saga for the Philippine market, a move Syed Faisal said underscores confidence in Proton’s engineering and product development capabilities.
CTRM moves up aerospace value chain
Separately, DRB-Hicom said its wholly-owned subsidiary CTRM Holdings Sdn Bhd is moving further up the aerospace value chain following its acquisition of Spirit AeroSystems Malaysia Sdn Bhd, transforming the unit from a Tier 2 supplier into a Tier 1 global aerostructures player.
The acquisition strengthens CTRM’s manufacturing scale, improves supply-chain visibility and enhances its bargaining position with aircraft makers, while creating opportunities to secure larger integrated aerospace contracts, Syed Faisal said.
CTRM is currently ranked by Airbus SE among the world’s top five composite aerostructure suppliers. The company holds an order book worth RM8.8 billion extending through 2040, supported primarily by long-term contracts with Airbus and The Boeing Company.
Airbus contributed 75% of CTRM’s revenue in the financial year ended 2025, while Boeing accounted for 24%. CTRM represents about 5% of DRB-Hicom’s group revenue.
Syed Faisal said global aircraft production is expected to remain resilient over the next decade to 15 years, providing long-term earnings visibility for the aerospace business.
The group added that the risk of aerospace contract reallocation remains limited because of high barriers to entry, including specialised tooling, certification requirements and lengthy qualification processes.
DRB-Hicom said it will continue advancing Proton’s regional expansion and strengthening CTRM’s market position while monitoring geopolitical tensions, inflationary pressures and supply-chain disruptions.
The group’s mobility division, comprising automotive, aerospace and defence operations, contributed 74% of total revenue in 2025.
At the midday break on Tuesday, DRB-Hicom shares fell 1.8% to RM1.12, giving the company a market value of RM2.16 billion. The stock has gained 42.7% over the past year.