Proton Committed To India Entry, Plans To Conclude Partnership By Early Next Year



CHENNAI, Nov 4 (Bernama) -- Proton Holdings Bhd is committed to enter the Indian car market, and optimistic it can conclude partnership talks with the potential partner by early next year or earlier.

"We don't want to set a time but we hope by early next year everything can be resolved, and if that is the case, manufacturing can start by 2011," Proton's managing director, Datuk Syed Zainal Abidin Syed Mohamed Tahir, told Bernama early this week.

He said Proton was confident its ongoing discussion could enter the next stage and there was no doubt of it entering the Indian car market.

Syed Zainal Abidin said Proton had been sending its cars to India for testing on Indian roads for the last one-and-half years.

"So we have a lot of feedback in terms of what needs to be done to our cars.

"The question is to find the right partner to get the facility and the manufacturing running," he said.

He was in India as part of the trade and investment mission headed by Minister of International Trade and Industry Datuk Mustapa Mohamed.

"Of course, in light of the current economic crisis, we are re-looking our strategy," he said, adding that Proton has been talking to a few parties, including Hero group.

Syed Zainal Abidin said it was a question of time and finding the right business model.

"It is just that now, with the current situation, we need to reassess our strategy and hopefully we will be able to conclude something because India is a very important market," he said.

He said Proton was looking for a partner with high experience in the Indian motor vehicle industry not only in manufacturing but also sales and distribution.

Syed Zainal Abidin said Proton would not bring completely built-up (CBU) units into India.

He said it would bring in completely knock down (CKD) units with high local contents as the component industry in India was well-developed.

"Our business model in India is not CBU. I don't think we can survive long term on CBU as it will be costly," he said.

Syed Zainal Abidin said Proton was looking for a partner with manufacturing and localisation expertise as it did not have it in India.

"So we are looking for partner that can support us and help us on that," he said.

He said Proton was also looking at an existing distribution network.

"India is a big market. I don't think it is worthwhile, and more difficult, to establish our own distribution network.

"It is more logical to tie up with a company that already has one," he said.

-- BERNAMA