Malaysia’s Proton, China’s Hawtai Discussing JV

Proton looks to expand its presence in China, signing a memorandum of understanding with Beijing’s Hawtai Motor Group to explore collaboration in product development and production.

The Malaysian and Chinese auto makers will evaluate the possible creation of a joint venture in China to develop new models through joint design and development cost-sharing.

Proton Exora could be built in China.

A Proton statement says their study of the business case will be completed in three months.

The initial phase after establishment of the JV would see Proton license its current models to Hawtai to be manufactured at a Hawtai plant in China for sale in the Chinese domestic market under the Hawtai brand, with possible co-naming with Proton.

Vehicles being considered for production in China are the Proton Exora multipurpose vehicle and the P3-21A sedan, slated to be unveiled early next year.

The auto makers also will explore development of new models.

The JV will be responsible for vendor sourcing and component-development work with local Chinese suppliers.

Proton says this will give it access to low-cost-base vendors in China and possibly cross-supply components from Malaysian parts makers to China.

“The MoU and the potential of a long-term relationship with Hawtai Motor Group is in line with efforts to establish China as one of Proton’s major manufacturing hubs by utilizing our partner’s local manufacturing capabilities, as well as network in sales and distribution,” Proton Chairman Nadzmi Salleh says.

Hawtai was established in 2000. It has annual production capacity of 200,000 vehicles, 300,000 engines and 300,000 transmissions.

Hawtai was involved in a JV in 2002 with Hyundai to manufacture Chinese-market versions of the Hyundai Matrix, Hyundai Santa Fe and Hyundai Terracan.

Hawtai’s current vehicle lineup includes a luxury sedan, the Hawtai Terracan SUV and its internally developed B-class SUV.