Malaysian automaker Proton’s future prospects in South Africa are looking bleak as the brand continues to grapple with difficult operating conditions.
This is according to the Combined Motor Holdings (CMH) Group, which is the automaker’s official distributor in South Africa.
CMH CEO Jebb McIntosh recently warned that Proton’s import and distribution operation has “continued to be challenging and costly.”
“Current inventory will be sold during the first half of the coming [financial] year, and thereafter the Group and the Malaysian manufacturer will decide on the way forward,” he wrote in the company’s integrated annual report for 2025.
Proton relaunched in South Africa in September 2022 following a near-decade-long absence.
The company initially set out with 20 dealerships across the country and two vehicles, which has since been expanded to a roster of four models.
This includes the Saga sedan, and the X50, X70, and X90 line of SUVs – all of which are competitively priced.
Despite this, the manufacturer appears to have failed to carve out a significant market share, and its dealer network has been capped at 10 outlets according to its website.
For context, Proton sold a total of 226 cars in the first four months of 2025, equating to roughly 56 new registrations per month.
In comparison, a top 10 brand like Mahindra sells roughly 1,200 vehicles per month, illustrating the gap in sales for a badge like Proton.
Who is Proton
Proton is a Malaysian carmaker that has a significant presence in Southeast Asia.
In 2017, the Chinese auto brand Geely acquired a 49.9% stake in Proton, allowing the latter to integrate the former’s technology and platforms into its fleet of vehicles.
This, in turn, allowed Proton to greatly expand its presence into new global arenas.
This set the stage for Proton’s comeback to South Africa in 2022, and McIntosh stated at the time that the company had high hopes for its prospects in our market.
The automaker claimed that there was a gap in the local auto scene for quality SUVs with an affordable price tag, which they’d be able to tap into.
“There are many luxury brands selling SUVs in South Africa, but most are simply unaffordable to the average car buyer here,” McIntosh previously said.
Proton deputy CEO Roslan Abdullah added to this, stating that the company would aggressively pursue export sales as the primary way to grow its overall volumes.
The original goal was to establish 25 dealerships within the first six months of operations, but this never came to pass.
One difficulty that the Malaysian carmaker faced was the rapid growth of other Asian brands during the same period, particularly those from China.
Chery and GWM are two of the leading makes in South Africa right now, and other Asian brands like Suzuki and Mahindra are also doing incredibly well.
All of these brands are able to compete with Proton on pricing while offering more extensive warranties and after-sale support.
Chery, as one example, provides a 10-year/1-million kilometre engine warranty for the original buyer.
In contrast, McIntosh said that Proton’s import and distribution operation has been difficult and costly with low warranty experience from customers.
The remainder of Proton’s current inventory is expected to be sold by the end of August 2025, after which CMH and the brand will decide how to proceed.
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