PROTON'S NEW MPV TO IMPROVE MARKET SHARE

KUALA LUMPUR, Jan 6 (Bernama) -- The market share of Malaysia's national car
company, Proton, may rise marginally despite the economic slowdown and slower
auto sales in 2009 due to its multi-purpose vehicle (MPV) launch in the first
quarter this year, according to international consultants Frost & Sullivan.

"Proton will hold its market share in the car segment and gain a little
market share in the MPV segments because it is not competing in the segment at
the moment. It will be additional sales for Proton," said the firm's partner and
head of the automotive and transportation practice for Asia Pacific, Kavan
Mukhtyar.

Speaking at a media briefing on the Malaysian automotive outlook here
Tuesday, Mukhtyar said Proton's market share is estimated to have increased to
28.7 percent last year from 26.6 percent in 2007.

He said the share increase was contributed by the new Proton Saga model,
which added 24,000 units to the national carmaker's total sales in 2008.

"It is very clear that Proton is now really developing models which are
customer-based and on strong customer feedback," he added.

According to Mukhtyar, Proton should focus on increasing its production and
volume because to keep launching new models at a frequent pace, the carmaker
needed economies of scale.

He said Proton, which was currently recording sales of 150,000 to 160,000
units, needed to produce at least 250,000 units in order to launch new models
every year and support research and development costs.

"Proton should also launch new accessories focusing on the women segment,
and have more proactive brand management and better after-sales service," he
suggested.

On the national automotive industry, Mukhtyar said the government should
clarify on the segments that the country wanted to focus and provide details on
incentives in order to further develop the industry.

Such issues, he said, are expected to be addressed by the National
Automotive Policy which is due to be launched in March or April this year.
-- BERNAMA