Proton Launches EV Factory Producing 20,000 Vehicles Per Year

TLDRs;

• Proton inaugurates Malaysia’s first EV assembly plant, aiming for 20,000 vehicles annually.
• The Tanjong Malim facility combines automation with trained staff, creating over 200 jobs.
• Partnership with China’s Geely enables local assembly of premium EV models.
• Malaysia strengthens its automotive leadership, staying ahead in Southeast Asia’s EV market.

Malaysian automaker Proton officially opened the country’s first dedicated electric vehicle (EV) assembly plant in Tanjong Malim, Perak, on Wednesday.

Prime Minister Anwar Ibrahim attended the event, highlighting the government’s support for the nation’s shift toward sustainable mobility.

The new facility is located within the Automotive High Tech Valley and represents a milestone for Malaysia’s automotive industry, which has a long history of pioneering regional car manufacturing. Full-scale production at the plant is set to begin this month, just seven months after the groundbreaking ceremony.

Production Targets and Job Creation

The plant’s first phase was built at a cost of 47 million ringgit (approximately US$11 million) and is capable of producing 20,000 EVs annually. Proton plans to scale this capacity to 45,000 vehicles in the future.

The facility will assemble Proton’s own e.MAS 7 and e.MAS 5 EV models, combining automated production lines with trained operators to ensure high efficiency and quality.

As production ramps up, the plant is expected to create more than 200 direct jobs, contributing to the local economy and supporting Malaysia’s growing automotive workforce.

Strategic EV Partnerships

A key aspect of Proton’s EV strategy is its partnership with China’s Geely, which provides access to advanced EV technologies and manufacturing expertise.

This collaboration allows Proton not only to improve its own EV models but also to locally assemble premium Chinese brands, including Zeekr.

China’s aggressive pricing in Southeast Asia has captured over 57% of EV sales, often offering discounts between 8% and 20% in the first half of 2025. Proton’s alliance with Geely positions the company to remain competitive in this price-sensitive market while leveraging Geely’s proven distribution networks. The move also strengthens Proton’s ability to compete across multiple market segments, from affordable EVs to premium models.

Regional Leadership in Automotive

Malaysia has a long-standing tradition of automotive innovation. The country’s first car assembly operations began nearly three decades before Thailand, starting with Ford in the 1940s and later launching the Volvo 144 in 1967. Proton itself was established in 1983, followed by Perodua in 1994.

The new EV plant continues this legacy, positioning Malaysia at the forefront of Southeast Asia’s electric transition.

With an RM82 million investment and the potential to reach 45,000-unit annual production, Malaysia demonstrates a strong commitment to maintaining its status as the region’s third-largest car market. Proton’s initiative also comes at a critical time, as Japanese automakers’ market share in Southeast Asia declined from 68.2% to 63.9% in 2024, while Chinese EV brands gained traction.

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