This is the story of Proton: the automotive star of Malaysia.
Appalled by the degradation of investigative journalism in
the recent times, our dear Shubham has donned a long kurta, picked up the pen,
diary and a side-sling bag to cover the journey of Proton. To avoid personal
biases creeping into my study & assessment, I refrained from referring to
the media or even the Malaysian people, majority of whom are very proud of their
country and its national produce (especially Proton).
Hence I decided to direct my studies and discussions to the
dispassionate assessors of the product. The native inhabitants of the land were
nominated- those of who were not necessarily using the product, but have seen
it evolve over generations.
One of the First Proton Saga to roll out: @ the National Museum, KL |
1. Malaysia & Proton
Hornbill |
SP (me): Greetings Ms. Horn-Bill, how you dooinn..?
HornBill (HB): Squeak.. Snarl..
I recalled reading somewhere that hornbills hated
small talk and thought it would be wise to get straight to the point.
SP: It would be great if you could throw some light upon the
story of Malaysia and its rise..
HB: Malaysia gained independence in 1957 and we have worked
tirelessly to emerge as a newly industrialized economy. To give you some perspective, let me throw some numbers. The per capita GDP of Malaysia is $17,500 (against
$4,000 in India). In terms of Forex reserves, we are ranked #20 in the World
and #26 in terms of export, ahead of many advanced economies. The economy had been traditionally fueled by
natural resources but we have evolved a lot with our former PM: Mahathir
Mohammed’s vision of creating an industrial power to be reckoned with.
Under Mahathir, Malaysia undertook an ambitious range of
traditional industrial-policy programs. The two most prominent focused on the
attraction of foreign direct investment (FDI) in export-oriented manufacturing, and efforts to develop “national champions” in mass manufacturing and
heavy industry, most contentiously in steel and automotive.
(Source: CIA World
Factbook)
HB: Ahh.. Proton.. Well. We are proud to be the only
South-East Asian country to have indigenously designed cars. Sure, Thailand
next door has a lot of manufacturing facilities for Toyota, Honda etc, but they
are simply shops producing the designed pushed from Japan (or elsewhere). The
idea was conceived by Mahathir Mohammed himself, who had the vision of creating
a product that will not just be an enabler for the citizens of the nation, but
also a means to reduce the import bill of the nation. Initially, we started
with the Proton Saga, which- along with the subsequent models were essentially
re-badged Mitsubishi Lancers. However, we have come a long way since.
SP: Is Proton still the leader? Do we have any numbers to
back that fact?
HB: Not precisely.. Proton was the leader for many years. It
was only recently, that those pesky mini-cars from Perodua have taken the lead in
Malaysia.
SP: Thank you for your time Ma’am, its been a pleasure.
2. The Rise: From Domestic leader to a true Multi-National
The Chimp |
SP: Hi there!
SP: I am here to get gain cognizance of Proton’s strategy. I
heard that Proton initially started as a manufacturer of Mitsubishi vehicles, then
there was a failed partnership with Citroen and the Lotus. Are Proton cars truly
Malaysian?
Chimp: Well you are right about the journey. What you miss
is the major milestone: The Waja. This was the first indigenously designed Proton
car. While we have considered partnerships, we are now truly capable of designing
and producing our own cars.
SP: Ah! The Waja! I have sat in a couple of Wajas here. Not all
great reviews to hear, I’m afraid. Some people end up comparing it with the old
Wira.
Chimp: If you would be kind enough to list the names of
those who dislike Waja, I will pray hard that they all be struck by lightning..
That is after I have personally shot them twice. Moving on. What more do you need
to know?
SP: Now I have to tell you: when Proton took over Lotus, a
premier sports automotive marquee, I was very much impressed. I find a dash of
irony there as well; for while the British ruled Malaysia in the recent past,
it is stunning to see the Malaysian powerhouse taking over (and saving) one of
the brands that had played a vital role in establishing British supremacy in
automobiles in the early world war era.
Chimp: Well, that’s how things are in the flat world. Have
you read Thomas Friedman’s books by the way? Once we Asian tigers have grown
well after capitalizing our home-ground markets, the world is our next
playground. Whatever Proton has done is remarkable but so have what you Indians and other Asian tigers have.
SP: Err.. I do not quite get it. You say we Indians have
done something similar??!
Chimp: Bah. And they call me chimp brain.. Of course you
have Mister. This South East Asian automotive phenomenon started off with
Thailand first, China and India thereafter. And as for the acquisition story,
what better than your TooToo fellow buying out those automotive houses that are
still considered the pride of Britain.
SP: Wow! Right you are!! It’s Tata by the way. Not TooToo..
Mr. Ratan Tata. A great man, if I may add. Yep. Tata did come in as the white
knight for Jaguar and Land Rover brands. This also helped Ford revitalize
itself with the cash, which I am told, was what it was desperate for in those
times.
Chimp: Yea Yea. Tata it is. And it does not stop there. It
was your home grown Tractor company that made sure that SsyangYong survived.
Did you know, what a great task this Mahindra has done?
SyangYong: A formidible player in Korea in the past |
Chimp: Your ignorance with worldly matters is highly
irritating. Wait.. I had it on my files somewhere. Looking Looking.. Ahh!! Here
it is! This is not what I say, but what KPMG guys say in their reports:
So much for your claims about SsyanYong being a miniscule
forgettable player. You homo-sapiens have much to learn..
SP: Thanks chimp, I walk away with a better understanding of
how automotive players transition from domestic markets to the global platform
Chimp: Glad I could help.Now if you could excuse me, I have a banana to finish..
Baby Croc |
The fellow analyzed me very deeply, seldom blinking or breathing. So I thought we were in a good frame to exchange ideas.
SP: So what are your thoughts on the future of Proton? Do you
think it will perform beyond it’s home market?
Baby Croc: Wheee… Look how I wag my tail..
SP: Charming.. But your thoughts on the domestic player
getting out of its comfort zone into mature international markets…
Baby Croc: Watch us! We siblings can pile up each other..
Wait.. Sara’s not here. Nor is Tommy.. It’s a lot more fun when we all create a
mountain out of us…
I chose not to continue the discussion. It seems 4 month old
crocs are oblivious to the future of their nation’s champions. I ought to have
carried on the discussions with elders of the clan, but as I elucidated
earlier, it was impossible to wake them up from their slumber.
3. The Road Ahead: What Destiny has in store..
I decided that the matter needed someone wiser and more experienced. I decided to look up to the wise one of the land; the name of whom
I had been hearing ever since my arrival to this nation. After running for
dates with the wise brains of the land, I finally was granted audience with the
wise white bird. On the fateful date, we met for our round table conference.
Excerpt from the discussion:
Wise Bird (WB) |
WB (Wise Bird): Glad to see you distant traveller. Now tell me: What is
it that weighs your mind?
SP: I am a bit worried about Proton. In Proton, I see a lot
of hard work and effort of the nation. I will be crestfallen if it fails.
WB: You read Wodehouse, don’t you? Pray ponder on these
lines: Success comes to a hard-worker as a rule, so
gradually that it is always something of a shock to him to look back and
realize the heights to which he has climbed
SP: I cannot in my dreams try to belittle the toil of Proton,
but hard work alone does not make you a winner. I am particularly concerned
about the road ahead for Proton. In the local market, another homegrown
behemoth: Perodua threatens to weaken Proton (see figures attached herein).
Internationally, I am not sure if Proton is actually making a significant
impact. So in short, I am anxious about the future of your national car maker.
(Source: Malaysian
Automotive Association)
WB: Ahh. I see concern. Is it love? Yes. I see it in your
eyes.
SP (shocked): Err.. Love?! Well I don’t know.
WB: Speak without fear child. It will easier to further the
conversation once you pour your heart out.
Proton Wira: Loved by all |
SP: Thinking about it. Yes.. I do want Proton to survive.
Love? Well yes again. It started when I saw the first era Saga and then the
Wira. It is the Wira that won me over. A huge fan of the boxy low riders of the
80-90s, the Wira did not have to try too hard. Like every red
blooded male, I loved the original Lancer & the Evo series. When I got to
know that the Lancer design was carried over for the earlier Protons (more
prominently in the Wira), I was elated!
Proton Persona |
To top it all, all the cab drivers in
the interior of Malaysia seem to be in congruence with my line of thought. And
in my opinion, who are better judges than cab-driver: who spend a lot
of time with their cars in varying terrains. Why, I met one in Langkawi who
said he would never trade his 10 year old Wira for the latest Persona; for
there was no car as tough and durable as the Wira. He went on to say that
stopping production of Wira was a conspiracy aimed to make room for other
Proton cars.
WB: Great to have shared your feelings for the Wira. I am
glad to see the respect it commands not just in Malaysia but even beyond.. But
you did not impress upon where your concern for Proton comes from? I believe
there is more that you have to say.
How did the wise bird
know I had more? That I was apprehensive in admitting my feelings for a relatively small automobile player? Could it read minds as well?
The challenger: Perodua MyVi |
SP: I am intrigued by your powers o wise one. You are right.
There is more to Proton that just a car (Wira) or two. My admiration is more to
do with the story of Proton itself. I happened to read the recent history of
Proton and am awestruck. A nation which gained independence later than my
country- went on to dream of a superb infrastructure and produce cars to reduce
the weight on the economy due to imports. Under Mahathir, Malaysia did make
this dream a reality. It is an absolute delight for me to see Malaysian
families moving around in Protons and Peroduas. For I feel Proton has indeed
been an enabler for the citizens, giving them good cars at a reasonable price.
And in return, the nation loves Proton and it is great to see the pride in
driving cars designed by your nation. At the same time, I do feel a pang of
jealousy that my nation has been left behind in this domain.
WB: Thank you dear fellow. Pray take a seat. Now tell me,
Don’t you have the same feelings for your national players: Tata, Maruti &
Mahindra?
I took a seat, as Ordered |
SP: I do O wise one. More so on the two wheeler front. In
fact, I ride a motorcycle indigenously designed in my country and am proud of
the fact. I can’t say the same about the other names you mentioned. Mahindra
and Tata make really great feature rich vehicles but age does show on them
thanks to the gaps on the quality front. As for Maruti, I feel as market
leaders they are cheating us a bit for the substance they put. Moreover, it is
not Maruti- it is a Japanese Suzuki.
WB: I understand your concerns mortal. But do not be too
harsh on your national jewels. Quality is not something that evolves overnight.
Give Tata time. Rather, it’s time is just around the corner- I have heard of
its new product offering. As for Maruti, I agree they try to pinch you when
they sell you outdated models or jack up prices of their bestsellers like the
Swift. However, do give them credit for setting the right examples for the industry,
by giving India specific solutions. I for instance am very impressed by the
Auto Shift transmission (not Automatic) on the Celerio. A great solution, at a
great price.
SP: Thank you wise one. I will try to assuage my thoughts to
a more rational side. But forgive me. I fear I drift from the topic.
WB: Coming back to our discussion, I would like you to come
up with the answer. I can show you the path, but you are the one who has to
tread on it.
SP: I am afraid I do not quite follow you wise one.
WB: Stay with me fellow. Now let us address your concerns one
by one. First, you were concerned about Perodua right? I can’t blame you there.
Perodua’s little cars have taken over Proton market share since for a good
time. Now tell me all you know about Perodua.
SP: Well. As far as I know it is controlled by the formidable
Japanese Daihatsu, which in turn is controlled by Zeus of mass automobiles-
Toyota! So we are looking at Daihatsu Sirion/ Toyota Passo being labeled as the
Perodua MyVi to become the biggest seller of Malaysia.
WB: Right you are. Now can you name Perodua’s mid-size
offering?
SP: I’m afraid I can’t. As far as I know, Daihatsu
specializes in mini-cars and small jeeps.
Spreadsheet: Prices in Malaysia (1 RM=INR17) (Proton Saga costs 55% less than similar sized Honda) |
Little Laddu: Not as little as the Perodua |
WB: Excellent. So that answers your first question. Remember, small cars may be a temporary phenomenon in a nation with great roads and low fuel prices. And as our nation’s people are empowered further, they will aspire to move from hatchbacks to saloons. And that is what Proton is prepared to do. It is the starting point for a mid-size car, coming at a fraction of price of its Japanese rivals.
Sample this spreadheet:
SP: The Price comparison puts things at perspective. But do you feel that Proton is slowly being labeled as a cheap brand?
The suave Proton Preve |
WB: Partly yes. One place where Proton has erred is the brand
perception. The problem with this strategy has been similar to the one faced by
Tata. The Nano, an excellent piece of frugal engineering saw several Indians
shunning it away thanks to the ‘Cheap’ tag. Some of it is true for Proton as
well. With rising incomes in Malaysia, people are aspiring for more expensive
brands. But now, I believe with a product makeover, Proton is very well
prepared to take back the lost ground in the near future. Lets see how the new
Perdana, Preve’ and Suprima premium
fight to win their lost share.
Proton Suprima |
SP: I hope so with all my heart that the value proposition works for Proton. But this 'cheap' tag is tough to shake off among critics.
WB: “Criticism comes
easier than craftsmanship”- Thus
spoke Zeuxis in 464 BC. And I stand by his words to defend Proton products,
which offer great build & quality at an affordable price.
SP: I agree. A small fact: I appreciate the thickness of
metal used in Protons. Different from our Marutis at home- which seem to be
thinning the sheets to drive up profitability and fuel efficiency for the
Indian community.
Proton Lekir (L) based on the gorgeous Lotus Elise (R) |
Legendary Mitsubishi Evo (L) inspires the Proton Jebat (R) |
SP: You say there is no big bang. Pray tell something more.
At least even some remote possibilities for the good of Proton.
WB: Haha. So you really are a true well-wisher. As for the
potential growth spots, I can say this: Proton now owns Lotus. Though Lotus’
future may be questionable, Proton now does have access to the Lotus
Engineering arm, which has a rich history in racing. Also it brings along its experience in designing
futuristic cars- in house and in a consulting capacity for other manufacturers.
Also, the collaboration with Honda is something to look out for.
SP: Interesting..
Mere Mortal: With the Wise Bird (WB) |
Borrowing a quote, I say this:
Viklavo veeryaheeno yah sa daivamanuvartate
Veeraah sambhaavitaatmaano na daivam paryupaasate
SP: Err.. Sir, I am not sure I understand.
WB: I borrow these quotes from your scriptures dear fellow,
this one from the fabled Ramayana. What I wish to convey is that:
Only the timid and the weak leave things to destiny (daivam) but the strong and the self-confident never
bank on destiny or luck (bhagya)
Here’s wishing Proton a great journey ahead and hope to
welcome it to India soon..