logo
Proton responds to leave claims: ‘we are not exiting South Africa'

Proton responds to leave claims: ‘we are not exiting South Africa'

The Citizen07-05-2025
Despite the imminent return of its parent company Geely, the lion brand, through CMH, will not be leaving local soil for a second time.
Proton has made it clear that it won't be leaving South Africa for a second time soon. Image: Proton
Its future in South Africa having been in doubt ever since its high profile return three years ago, Proton importer, Combined Motor Holdings (CMH), has it back at claims this week of the Chinese-owned Malaysian brand ceasing operations due to faltering offset.
Struggling
Relaunched with the X50 and X70 SUVs, before the addition of the Saga entry-level sedan and flagship X90 SUV, Geely-owned Proton has struggled to a find footing in the local market with its first full year of reported sales in 2024 yielding an offset of 888 units.
ALSO READ: Proton X90 helps Malaysian carmaker stand out from the crowd
According to the latest sales figures by the National Association of Automobile Manufacturers of South Africa (Naamsa), 226 Protons have so far departed from dealership floors throughout the first four months of 2025, which alluded to a possible withdrawal before year-end.
Geely returning
Heightening matters further is the imminent return of Geely itself to South Africa, whose products, aside from the Saga, provide the base for the majority of Proton's current range.
Proton parent company, Geely, will return to South Africa before the end of 2025. Image: autoindustriya.com
This includes the X50 being a rebadged version of the Geely Binyue, the X70 being based on the Boyue and the X90 derived from the Geely Haoyue.
Bold claims
At the time of the brand's relaunch, CMH CEO, Jebb McIntosh, said, 'luxury brands have become so unaffordable for the majority of South Africans. The purchase of the stake by Geely has transformed Proton.
Now pre-facelift X70 was one of the first Geely models to receive Proton badging. Image: Proton
'When the brand became available, we jumped at the opportunity for several reasons, but mostly, we saw a gap in the market for a quality SUV within an affordable price bracket'.
At the same event, Proton South Africa Managing Director, Greg Snodgrass, said the brand would be aiming at comparative Volkswagen and Mazda products rather than Chery and Great Wall Motors (GWM) Haval based on the tagline of 'affordable luxury'.
'Proton is staying'
Earlier this week, an obtained annual report by CMH alleged that the importation of distribution of Proton products had become difficult and that a decision on the brand's future would likely to be made before year-end once current inventory runs out.
Saga currently serves as Proton's only sedan and overall entry-level model in South Africa. Image: Proton
Since January, numerous attempts by The Citizen seeking clarity on Proton's local operations have fallen on deaf ears, the most recent in February going unheard.
In a statement on Wednesday (7 May), the automaker said the claims of its departure are unproven and that the annual report about the supposed sales difficulty 'was strictly in relation to stock liquidation of ageing inventory in a very difficult and competitive market— a standard industry practice to prepare for the arrival of exciting new models'.
X90 currently tops Proton's local product range. Image: paultan.org.
'Proton is not exiting the South African market. Proton is strengthening its home market presence by preparing to launch new-generation vehicles, including compact sedans, hatchbacks, and competitive B-segment SUVs with internal combustion and hybrid powertrains,' the statement concluded.
More soon
At stands, no further details about the mentioned new products are unknown, however, with apparent assurance now been given in spite of the pending arrival from Geely, expect more to be revealed within the coming months.
NOW READ: Proton pair passes test, but has bigger things to worry about
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Billionaire F1 boss Ong Beng Seng admits guilt in explosive Singapore corruption case
Billionaire F1 boss Ong Beng Seng admits guilt in explosive Singapore corruption case

IOL News

time20 hours ago

  • IOL News

Billionaire F1 boss Ong Beng Seng admits guilt in explosive Singapore corruption case

Malaysian hotel tycoon Ong Beng Seng (C) leaves the State Court in Singapore on August 4, 2025. Malaysian hotel tycoon Ong Beng Seng pleaded guilty August 4 to a charge linked to the city-state's former transport minister who was jailed for corruption. (Photo by Roslan RAHMAN / AFP) A Malaysian hotel tycoon who helped bring Formula One to Singapore pleaded guilty Monday to abetting the obstruction of justice, in a rare corruption case in the city-state that saw a former transport minister jailed last year. Singapore-based billionaire Ong Beng Seng, 79, was charged in October last year with helping former transport minister S. Iswaran cover up evidence in a graft investigation. He was also accused of showering Iswaran with lavish gifts, including tickets to the 2017 Singapore Formula One Grand Prix, flights on a private jet, business class travel, and a luxury hotel stay while Iswaran was working in his official capacity. Ong entered his guilty plea from a glass-encased dock at a district court in downtown Singapore on Monday. Prosecutors sought a two-month jail term after Ong agreed to plead guilty. He will be sentenced on August 15. But prosecutors also agreed with defence lawyers that the court could show "judicial mercy" -- which could further reduce any sentence.

What are the main issues facing new Renault CEO Provost?
What are the main issues facing new Renault CEO Provost?

TimesLIVE

time5 days ago

  • TimesLIVE

What are the main issues facing new Renault CEO Provost?

Incoming Renault CEO Francois Provost will take the helm of the French carmaker at a time when it is beginning to show cracks in its recent success, revising down its full-year profit forecast earlier this month due to weaker sales volumes. Below are some of the challenges ahead for Provost when he takes over on Thursday. Tougher competition While Renault has been largely protected from US tariffs because it does not sell in the US, it has been indirectly hit by increased commercial pressure as European competitors looking for new markets outside the US step up efforts to sell in the French firm's home region. The company reported zero growth in second quarter sales volumes, and warned of weak sales performance in June. It is also facing rising competition from Chinese entrants, both in electric vehicles and hybrids. Analysts at Barclays say Renault may have seen slower price-mix momentum in the first half of the year. The company is scheduled to report full results for the first half on Thursday. Dependency on Europe and cars With sluggish growth in Europe where Renault sells more than 70% of its cars, it needs to expand in emerging markets. It has already outlined plans to invest €3bn to launch eight new models under the Renault brand for non-European markets by 2027. It will also target developing less cyclical businesses beyond cars, such as EV charging and financial services, as part of a midterm strategy which former CEO Luca de Meo had aimed to unveil later this year. Too small, less independent Conscious that its small size does not allow it to fund the development of electrified and autonomous vehicles, Renault has set up numerous partnerships, including with China's Geely in Korea and in combustion and hybrid engines around the world, and with Volvo Group in electric vans. However, this strategy has raised concerns among unions that the company could lose its in-house know-how and its independence. Renault, ranking only 15th in volumes globally, is frequently the subject of rumours of a tie-up with larger peer Stellantis. Partnerships with Geely also have some worried about potential leverage by China, though Renault's main shareholder, the French state, says the tie-ups do not compromise the company's ability to remain independent. A high pace of launches Under de Meo, Renault launched one of the biggest product renewals in its history, with a record 10 launches and two facelifts last year. It is planning another seven launches and two facelifts in 2025, including of the Renault 4 and the Dacia Bigster, and eight more in 2026, according to sources familiar with the matter. Key to increasing market share, new launches also require significant investment in marketing and industrial fine-tuning to deliver cars on time, at the right quality. Van woes A leader in Europe's high profit commercial vehicles market, Renault's van sales plunged by 29% in the first half due to a softer economy, and an overhaul of its models and product offering. Getting back to investment grade One of Renault's top priorities is to get its credit rating back to investment grade to attract new investors, while also boosting its market cap, currently only at €10bn versus Stellantis' €23. Renault's debt is rated Ba1 by Moody's and BB+ by S&P Global, one notch below investment grade. Nissan Since starting to rebalance its partnership with Nissan in early 2023, Renault has done three share sales, and reduced its stake in its Japanese partner to 35.7% (17.05% held directly and 18.66% via a trust). It will need to find the right time to sell more, made more challenging by Nissan's financial and operational difficulties. It will also play a role in Nissan's overhaul, particularly if the Japanese company decides to sign a strategic partnership with another manufacturer. Renault opposed recent plans for a tie-up with Honda because it considered the financial terms were not generous enough.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store