Proton Saga CKD assembly in Egypt to begin in December

KUALA LUMPUR: Proton has taken another significant step toward addressing global market demand. The Malaysian automaker is set to begin local assembly of its popular Saga model in Egypt in December this year to strengthen its foothold in the Land of Ra.

This move comes as part of a strategic partnership between Proton and Ezz Elsewedy Automotive Factories (ESAF), which is supported by a local distributor Ezz Elarab. The automaker aims to assemble and sell around 5,000 units of the Proton Saga in Egypt by 2025. It also anticipates transforming Egypt into a significant hub for Proton models in the region.

Proton announced the beginning of the CKD operation in Egypt during a flag-off ceremony recently at Proton’s Centre of Excellence headquarters, where 120 units of left-hand drive (LHD) Proton Saga CKD packs were dispatched to Egypt.

The event was graced by H.E. Ragai Tawfik Said Nasr, Egypt’s Ambassador to Malaysia, and Datuk Hanafi Sakri, Deputy Secretary General (Industry) at the Ministry of Investment, Trade, and Industry. They were hosted by Tan Sri Syed Faisal Albar, Chairman of Proton. Also present were Roslan Abdullah, Deputy CEO of Proton, Amr Abou-Elseoud from Ezz Elarab Elsewedy Automotive Factories, and Steven Xu, Proton’s Director of International Sales.

“Export sales are an important area of focus for Proton in our efforts to achieve our long-term goals. As the Malaysian automotive market reaches a natural saturation point, future volume growth potential will come from overseas markets where consumer demand is expected to be on an upward trend in the future. The addition of CKD operations in Egypt brings the number of plants involved in CKD and SKD activities for Proton outside of Malaysia to five” said Proton’s Deputy Chief Executive Officer, Roslan Abdullah.

Since 2004, Proton has been retailing its cars in Egypt in association with Ezz Elarab. During this period, nearly 17,000 cars have been exported to the country. Looking ahead, it’s projected that over 1,400 units will be shipped to Egypt in 2024. 

The company is expected to generate RM 570 million from the export of CKD packs to Egypt by 2026, with an additional RM 20 million from parts exports. The local Egyptian economy is projected to earn RM 180 million in duties and taxes from Proton vehicle assembly.

“Locally assembling the Proton Saga in Egypt, allows the company to meet the aim of the Egyptian government to limit the number of CBU imports into the country while also encouraging local assembly activities. This in turn creates the potential for greater future capacity expansion in the country, especially after we launch new models, with the aim to make Egypt the hub for Proton vehicle exports in the North African region,” said Steven  Xu, Director of International Sales, Proton.  

“PROTON is the leading exporter of vehicles in Malaysia and while our current volume is approximately 3% of our total sales numbers, efforts are being made to increase that number by focusing on multiple core areas.  For instance, Proton engages with its vendors to reduce component costs while also inviting them to collaborate with companies in other countries to develop supply chains for our overseas production activities.  This will pay dividends in the long term not only for the company and its vendors but also for the development of the automotive industries in these foreign markets,” added Steven Xu.  

Also read: Proton crosses 100k YTD sales mark; hits new milestone in Brunei