Who dominates the Malaysian auto market?

The Southeast Asian auto market has always been a stronghold for Japanese branded cars. The Japanese have worked hard to manage the ASEAN market and have been deeply rooted. Although ASEAN countries are wary of Japanese car companies, they are not monolithic internally and have been penetrated by Japanese car companies and are the entire industry chain. The model, the upstream and downstream industrial chain is controlled by the Japanese, and the Japanese have become a fortress.

And Chinese brand cars will enter the ASEAN market, prying their mouths to grab the Japanese car market share. Many Chinese car companies have begun to test the Southeast Asian car market, and Malaysia is one of them. Chery and other Chinese brand cars that have entered the Malaysian auto market are currently in their infancy, and their sales are quite good. They have sold less than a hundred cars in a quarter. It is not an exaggeration to describe them as bleak business.

Geely has to take a shortcut and directly acquire Proton, Malaysia's largest independent car company, hoping to use Proton's existing resources to directly enter the Southeast Asian auto market. It has been reported that Geely will withdraw from the acquisition of Proton, and Geely officials have already acknowledged this. A few days ago, the Malaysian media broke the news again, saying that Geely had once again started discussing the acquisition with Proton, with twists and turns, and it might not be possible to predict the outcome until the last moment.

Perodua's Axia (axia price 2019 is RM 24,090-43,390), the number one brand car sold in Malaysia, and Prodon has been losing money for a long time. The Malaysian government eagerly hopes that new investors will take over Prodon, but it does not hope that foreign car companies will completely control Prodon and look for buyers while entangled. Of course, there will be a dramatic scene in the negotiation process. Geely's retreat and re-entry is a good example.

Geely has long coveted the Southeast Asian auto market. Right-hand drive vehicles have a huge global market share. Southeast Asia is also a large market with great potential. The close business relationship between China and ASEAN, geographical advantages, etc., have all prompted Geely to accelerate its entry into ASEAN, but which way to choose It is a lot of painstaking effort. Of course, the best plan is to acquire Proton, without going through the wasteland reclamation stage, standing at a high starting point, it will quickly penetrate into the ASEAN auto market.

Geely may choose to retreat first and then move forward. It first enters Malaysia and builds a bridgehead, and then plans to enter the auto market in other ASEAN countries. The price is huge investment in Proton. Although it has experience in successfully acquiring Volvo, whether it can replicate in Malaysia It's something later, but it's worth trying.

Source: Wapcar