PROTON has frozen its imports until at least the middle of next year, putting its dealers on ice as it battles to make its engines meet Australia’s recently updated emission regulations.

It sells two models in Australia – the Suprima S and the Exora – through 16 sales outlets but has not imported any cars since the change in emission regulations in November. It also has 11 parts and service centres.

Dealers contacted by GoAutoNews Premium were fully aware of the issue but have not been told when the fix would arrive. One said he had some stock but heard new – and compliant – cars would not arrive until the company found an engine partner.

Proton Cars Australia spokesperson, Varsha Chandurkar, said the updated cars were expected in April or May next year, but was unable to confirm any exact time.

She said there were about 60 unsold cars in Australian dealerships that were built before November, but otherwise dealers will have to wait for new stock.

However, information from Malaysia indicates the new emissions-compliant engines could be as late as the end of 2017.

Proton Holdings Bhd chief executive officer Datuk Abdul Harith Abdullah said earlier this year that the company was to spend $A180 million to build a new engine family with better fuel efficiency and lower emissions, particularly aimed at European markets.

But he indicated in a statement that these new engines would take up to two years to finalise.

The engines were being developed by its subsidiary Lotus and consultant engineers Ricardo plc in the UK, and would be capable of surpassing Euro 5 and meet the future Euro 6C standard expected after 2020. Ricardo would not comment on its clients.

Proton has publicly said that the development would involve six petrol and turbo-petrol engines ranging from 1.0-litre three-cylinders to 1.5-litre four-cylinder units.

These would gradually be released onto the market and expected to be in use by all Proton cars from 2019 onwards.

The inability to meet the Euro 5 standard, which was gradually introduced by the Australian federal government from 2013 to allow manufacturers time to comply, has also taken the Chinese ZX Grand Tiger ute off the market along with the Nissan Patrol Y61, JMC petrol utes and Land Rover Defender.

But the emissions regulation isn’t Proton’s only thorn. Shaken by a shrinking market share in its domestic market – now about 15 per cent compared with about 60 per cent a decade ago – it was linked earlier this year to Renault with plans for a partnership that could have included new drivetrains.

In Australia, sales this year to the end of November totalled just 168 cars, down 57.7 per cent on 2015. In the month of November, Proton sold only three cars, one more than its subsidiary Lotus.

The Malaysian Ringgit has also taken a tumble on foreign exchange rates, making imported raw materials more expensive. Two years ago one Ringgit bought $A0.36 and now the Ringgit is at $A0.29

 

Proton this year started exports to Chile to increase its export sales from the current level of five per cent of production. Malaysia has a free-trade agreement with Chile.

The Malaysian car-maker, which has been privately owned since 2012 by industrial conglomerate DRB-Hicom, has been urged by the Malaysian government to seek a partner to assist it with future technology.

Proton, which has owned Lotus Cars since 1996, has indicated it would consider partnerships with car-makers such as Renault, Volkswagen, Suzuki, PSA Group and Geely, and has pledged to honour its government’s decision date of early 2017.

Renault’s Asia-Pacific region chairman Gilles Normand said in a statement in October that Renault’s lowest market share worldwide was in the Asia-Pacific.

He said the agreement between its alliance partner Nissan and Mitsubishi would strengthen its presence in Asia-Pacific but – without specifying Proton – he believed there were other alliance opportunities.

By Neil Dowling