KUALA LUMPUR: Proton Holdings Bhd is looking to rekindle its ties with international auto retailer and distributor Inchcape plc to leverage its global network.
“We are exploring opportunities with Inchcape to optimise our overseas distribution network, especially within Asean,” Datuk Syed Zainal Abidin Syed Mohamed Tahir, Proton managing director, told The Edge Financial Daily.
He said the deal with Inchcape involves Proton’s distribution network in Indonesia, which has proven to be a strong market for the national carmaker.
Sales of Proton vehicles in Indonesia rose 23.5% to 2,060 units in 2010 from the previous year, as it received a considerable boost from the Proton Exora. It is the 12th top brand there behind Chevrolet and Hyundai, according to Proton’s recent annual report. PT Proton Edar Indonesia currently manages the distribution of Proton vehicles there.
“If the deal with Inchcape proves to be good, we may elect them as the exclusive distributor for Indonesia,” said Syed Zainal Abidin.
Presently, Proton and Inchcape do not have any working arrangements. However, the two companies have a history.
Proton was first introduced to Australia in 1995 through Inchcape, before all dealers under the arrangement moved en bloc as Proton formed a wholly-owned subsidiary to manage its operations there.
Along with Proton, the company previously distributed other brands such as Ferrari and Audi in Australia but has since narrowed its focus there to Subaru, Volkswagen, Kia and Mitsubishi.
In the same year, Inchcape disposed of its 30% stake in Proton Cars (UK) Ltd to Proton, which then had full ownership of the unit. Proton had previously bought the 70% stake in Proton Cars (UK) Ltd from its founder and chairman David Brown.
The national carmaker currently exports to China, Thailand, Indonesia, Singapore, Australia, the UK and the Middle East.
According to its latest annual report, total shipments to overseas markets rose 12.3% year-on-year in 2010 mainly due to higher exports of completely-knocked-down (CKD) vehicles and cam profile switching (CPS) engines to China.
Its top five performing markets last year were Thailand, Australia, Indonesia, Egypt and Syria.
UK-based Inchcape has a strong presence in its home country, where it derives more than a third of its global sales from partnerships with BMW, Audi, Volkswagen, Lexus and Ford among others. The company distributes Toyota, Lexus, Hino and Suzuki vehicles in Singapore. In Brunei, it distributes Toyota and Lexus.
These two markets make up its South Asia portfolio, which made a profit of £36.1 million (RM178.2 million) in 2010, though this was a 35.4% drop from the previous year. It is also present in the Australasia region, the UK, Europe and North Asia.
“We anticipate the uneven global economic recovery will continue but with our strong portfolio of the world’s leading luxury and premium automotive brands, we are uniquely positioned worldwide to benefit from the exciting growth opportunities in the fast growing economies of Asia-Pacific and the emerging markets where the group delivers two-thirds of its trading profit,” Inchcape CEO Andre Lacroix said in an interim update recently.
This article appeared in The Edge Financial Daily, December 15, 2011.
“We are exploring opportunities with Inchcape to optimise our overseas distribution network, especially within Asean,” Datuk Syed Zainal Abidin Syed Mohamed Tahir, Proton managing director, told The Edge Financial Daily.
He said the deal with Inchcape involves Proton’s distribution network in Indonesia, which has proven to be a strong market for the national carmaker.
Sales of Proton vehicles in Indonesia rose 23.5% to 2,060 units in 2010 from the previous year, as it received a considerable boost from the Proton Exora. It is the 12th top brand there behind Chevrolet and Hyundai, according to Proton’s recent annual report. PT Proton Edar Indonesia currently manages the distribution of Proton vehicles there.
“If the deal with Inchcape proves to be good, we may elect them as the exclusive distributor for Indonesia,” said Syed Zainal Abidin.
Presently, Proton and Inchcape do not have any working arrangements. However, the two companies have a history.
Proton was first introduced to Australia in 1995 through Inchcape, before all dealers under the arrangement moved en bloc as Proton formed a wholly-owned subsidiary to manage its operations there.
Along with Proton, the company previously distributed other brands such as Ferrari and Audi in Australia but has since narrowed its focus there to Subaru, Volkswagen, Kia and Mitsubishi.
In the same year, Inchcape disposed of its 30% stake in Proton Cars (UK) Ltd to Proton, which then had full ownership of the unit. Proton had previously bought the 70% stake in Proton Cars (UK) Ltd from its founder and chairman David Brown.
The national carmaker currently exports to China, Thailand, Indonesia, Singapore, Australia, the UK and the Middle East.
According to its latest annual report, total shipments to overseas markets rose 12.3% year-on-year in 2010 mainly due to higher exports of completely-knocked-down (CKD) vehicles and cam profile switching (CPS) engines to China.
Its top five performing markets last year were Thailand, Australia, Indonesia, Egypt and Syria.
UK-based Inchcape has a strong presence in its home country, where it derives more than a third of its global sales from partnerships with BMW, Audi, Volkswagen, Lexus and Ford among others. The company distributes Toyota, Lexus, Hino and Suzuki vehicles in Singapore. In Brunei, it distributes Toyota and Lexus.
These two markets make up its South Asia portfolio, which made a profit of £36.1 million (RM178.2 million) in 2010, though this was a 35.4% drop from the previous year. It is also present in the Australasia region, the UK, Europe and North Asia.
“We anticipate the uneven global economic recovery will continue but with our strong portfolio of the world’s leading luxury and premium automotive brands, we are uniquely positioned worldwide to benefit from the exciting growth opportunities in the fast growing economies of Asia-Pacific and the emerging markets where the group delivers two-thirds of its trading profit,” Inchcape CEO Andre Lacroix said in an interim update recently.
This article appeared in The Edge Financial Daily, December 15, 2011.
