Proton Targets India, Middle East to Grow, Business Times Says

By Dinakar Sethuraman

Jan. 10 (Bloomberg) -- Proton Holdings Bhd. may sell more cars overseas and is targeting India, the Middle East and Africa for expansion, the Business Times said, citing company Chairman Nadzmi Mohd Salleh.

The domestic market is not adequate for expansion as the national carmaker requires larger volumes to reduce costs and make better margins, the Malaysian daily said. Proton will be under pressure this year after foreign carmakers offer promotions to sell their stocks, it said.

The company supplies cars to 24 markets including the U.K., Iran, Australia, New Zealand, Indonesia, Singapore, Thailand, Egypt and China, the report said. The company, which sells about 150,000 cars a year in Malaysia, sells fewer than 50,000 overseas.

Malaysian vehicle sales will drop this year as consumer spending falls amid a global recession and carmakers release fewer mass-market models, Frost & Sullivan said on Jan. 6.

To contact the reporter on this story: Dinakar Sethuraman in Singapore at dinakar@bloomberg.net