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Electric Proton vehicle may stimulate the growth of local production networks and potentially displace existing ones.

Malaysia's debut electric vehicle, the e.Mas7, launched by Proton in December, may stimulate local component manufacturing. However, this growth could be limited due to market conditions, with the existing supply chain continuing to struggle.

Could Proton's introduction of an electric vehicle stir up fresh domestic supply chains,...
Could Proton's introduction of an electric vehicle stir up fresh domestic supply chains, potentially replacing existing ones?

Electric Proton vehicle may stimulate the growth of local production networks and potentially displace existing ones.

In the world of automotive innovation, Proton has taken a significant step forward with the launch of its electric vehicle (e.Mas7) in December 2024. The e.Mas7, priced between RM105,800 (US$23,950) and RM119,800 (US$27,120), marks a new era for the Malaysian automaker.

Initially, the e.Mas7 will be imported from China as a Completely-Built-Up (CBU) unit. However, Proton has plans to establish a dedicated EV manufacturing plant in Tanjung Malim, Malaysia, which is set to become operational by the end of 2025. This move signifies Proton's commitment to local production and its belief that the global demand for Internal Combustion Engine (ICE) cars will persist for some time.

To prepare for this transition, Proton has invested in a new high-tech engine assembly line in 2023 and arranged a business match-making event in July 2024 to facilitate interactions between its existing Malaysia-based suppliers and Geely's EV suppliers. This event aimed to foster collaborations and develop new EV component supply chains, which are crucial due to the increased need for new batteries, additional semiconductors, and advanced electronic components.

The focus of Proton's operations is on the Asia Pacific, China, and Malaysia. The company plans to export the e.Mas7 to Mauritius, Nepal, Singapore, Trinidad and Tobago, and Brunei, expanding its reach within the ASEAN region and beyond. This move aligns with Proton's efforts to export its ICE cars since 2020 to countries like Kenya, Mauritius, South Africa, Pakistan, Brunei, Bangladesh, and Egypt.

The e.Mas7's launch and Proton's strategic moves are significant in the context of the Sustainable Development Goals (SDGs). The SDGs addressed in this article are Economic growth (SDG 8) and Infrastructure (SDG 9), with a potential connection to Consumption (SDG 12). Proton's investments and plans for local manufacturing and exports contribute to these SDGs, promoting economic growth, infrastructure development, and sustainable consumption practices.

While specific details about new technological and financial partners for local component producers in Malaysia focused on EV and new energy vehicle production are not yet available, global leaders in automotive technology like MAHLE and Continental might collaborate with local producers to support the industry.

As Proton continues to navigate the electrification of its vehicles and the shift towards sustainable manufacturing practices, it is clear that the company is committed to business resilience, decarbonisation, and a sustainable lifestyle. The e.Mas7 is just the beginning of Proton's journey towards a more electrified future.

This article was first published on Fulcrum, ISEAS - Yusof Ishak Institute's blogsite, covering topics related to Carbon & Climate, Energy, Manufacturing, and Transport.

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