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Sunday / 16 February 2025
HomeFeaturesWhy Proton left South Africa

Why Proton left South Africa

Proton first entered South Africa in 2005 but ceased delivering units to the country in 2012, selling a total of 5,295 vehicles during this time.

At its recent re-opening, the Malaysian automaker revealed why it initially had to stop selling vehicles in our market.

According to Proton, the main reasons it withdrew from South Africa are:

  • Lack of resources and products
  • Bottlenecks in research and technology
  • Supply chain and global automotive advancement
  • Market expectations and no solid domestic business partner

The company said it “could not survive as an independent OEM (original equipment manufacturer) without strong [local] back-up” which led to its closing seven years after it established its first foothold in the country.

What’s next for Proton in South Africa

Proton said it is now much more prepared for the South African market than before as it has significantly increased its global production capacity to 200,000 units per year and has partnered with CMH Group to be its official domestic distributor.

CMH has been in business in the country since 1976 and currently boasts 75 new-vehicle franchises.

At the launch of the new X50 and X70, Jebb McIntosh CEO of CMH said that the organisation already carries a full range of replacement parts for the Proton SUVs and will now get to work establishing a network of Proton dealerships along major routes.

Before the end of 2022, a total of 20 dealerships are planned, by the end of 2023, 27 dealerships, and by the end of 2024, 35 dealerships.

Along with the growing footprint, Proton will also introduce three more models in the not-so-distant future.

The company confirmed that within the next year and a half, we can expect at least one additional SUV as well as two sedans to bolster its local product portfolio.

It said these vehicles, along with the X50 and X70, are aligned to be “affordable luxury” – in other words, Proton said its offerings strive to compete against the more conventional European luxury brands by offering the same level of spec and build quality at a more affordable price.

Proton made a point thereof that it does not have the value-for-money Asian brands in its sights, but rather those from Germany and Italy.

It aims to achieve these goals by making use of strategic sharing of knowledge between sister brands Lotus and Volvo who all fall under the same parent company Geely, as a spokesperson for the brand said there are tricks of the trade being shared between all these manufacturers.

The true extent to which the automakers share their knowledge is unclear, though it seems to have been beneficial thus far as we walked away rather impressed on our recent test drive in the new X50.

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