Philip Bowring wrote in the New York Times, “Proton is important not just because it is a huge enterprise in a car-obsessed nation. Proton built a second, $800 million plant in 2000 that tripled production capacity. Locally manufactured components increased from 42 percent in 1985 to 80 percent in 1995. More than 10,000 cars were sold in Britain. There was a backlog for deliveries of several months. Sales was largely due to tariffs and nationalist pressures. The company has only managed to survive thanks to generous government subsidies and tariffs that made other car prohibitively expensive. The first year 17,000 cars were produced. Proton got off to a rocky start when the first cars rolled off the assembly line during a recession. The success of the company was a national obsession and the cornerstone of a heavy industrialization effort. Proton is regarded as something of a boondoggle. Proton stands for Perusahaan Otomobil Nasional Bhd. It is a Toyota-Corolla-size vehicle modeled after the Mitsubishi Colt/Lancer. Later the company made another the car, the Proto Wira. Proton’s first car, the Proton Saga, rolled off the assembly line in July 1985. Malaysia is proud of the fact that it produces its own cars.
(English: National Automobile Manufacturer Private Limited). Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Bhd. The company was founded in 1983 and was the sole vehicle manufacturer in Malaysia until the establishment of Perodua in 1993.
The company is headquartered in Shah Alam, Selangor and operates an additional manufacturing plant in Tanjung Malim, Perak. It produced its 3 millionth care in 2008. It exports to over 26 countries and has over a dozen models. Proton (Proton Holdings Berhad) is Malaysia's leading automotive manufacturer. Nissan vans are produced locally by the Tan Chong group which also assembles Audis, Peugots, Man, Subarus, Daewoo and Chrysler and lipstick. Honda has a venture with DRB-Hicom and Oriental Holding. The top selling automobiles in Malaysia in 1995 were: 1) Proton Saga 2) Proton Wira 3) Perodua Kancil. But it lost in the race to attract foreign car makers after Thailand–now dubbed the Detroit of Asia–showered investors with generous incentives. Malaysia once harbored ambitions to be the Southeast Asian regional automotive manufacturing hub.
Jason Ng wrote in the Wall Street Journal, “Foreign car makers and consumers have long grappled with the high tax structure imposed by the Malaysian government to protect local car makers. Some foreign cars to cost almost three times more than the original price. These duties and taxes have made foreign cars very expensive for consumers in Malaysia. In addition to import duties, Malaysia also imposes an excise tax of between 65 percent and 105 percent-among the highest in the world- as well as a 10 percent sales tax on foreign automobiles sold in Malaysia. The government maintains its high taxes and duties “to protect their interest” one government official told the Wall Street Journal. The automobile industry in Malaysia employs about 350,000 Malaysians. These local manufacturers are Proton and Perodua. Malaysia's car industry is dominated by two local manufacturers which are heavily supported by the government through National Car Policy e.g.
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