Malaysia’s former prime minister Mahathir Mohamad has urged the country’s government to restrict the import of cars from China as the national carmaker Perusahaan Otomobil Nasional Bhd. (Proton) saw its share of the local car market shrinking.
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Mahathir, who became Proton adviser in April last year, told Kyodo News the import of cheap foreign cars is hurting Proton – while other countries can easily bring their cars into Malaysia, there are barriers preventing Proton from penetrating the overseas market, he said.
”I accept that Proton should not be forever protected, but there must be fair competition…If other countries impose restrain[t]s on us, we should reciprocate. That’s fair, but other countries are basically dumping (cars in Malaysia),” he told the news agency after visiting an automotive training college.
Kyodo News noted his comments came as two Chinese car manufacturers – Chery Automobile Co. and Geely Holding Group Co. – signed separate deals recently with a local company to distribute their cars in Malaysia, Southeast Asia’s biggest passenger car market.
These cars are expected to be priced between 40,000 ringgit ($US10,500) and 60,000 ringgit, nearly the same price range of Proton cars.
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By GlobalData”If they come in and we can go there, then it’s alright, but we can’t go there as we haven’t got the licence. We have been trying for the past five to six years,” Mahahtir reportedly said of Proton’s attempt to enter China.
Kyodo News said Proton plans to partner with Goldstar Heavy Industrial Co. in China to produce some 50,000 sedans in the first year in Guandong Province, but the Chinese government has yet to give the green light.
”I am not complaining about China – that is their policy – but if they are protective, we should be protective as well,” Mahahtir added.
Kyodo News said the Chinese market is seen as key to Proton. Created by Mahathir in 1983 to spearhead development of the country’s heavy industry, the company has long been protected by duty rebates, allowing it to dominate the market by up to 80%.
That share has shrunken to about 40% in a 430,000-unit-a-year market, and the company’s future looks even bleaker as the government looks set to open up the market further, thus pushing Proton to seek new markets overseas.
