Proton has announced the start of Completely Knocked Down (CKD) operations in Egypt, marking another milestone in its international expansion efforts. The announcement was made at an event held at Proton’s Centre of Excellence headquarters, featuring a flag-off ceremony for 120 left-hand drive (LHD) Proton Saga CKD packs being shipped to Egypt.
The event was graced by several distinguished guests, including H.E. Ragai Tawfik Said Nasr, the Ambassador of Egypt to Malaysia, and Datuk Hanafi Sakri, Deputy Secretary General (Industry) of the Ministry of Investment, Trade, and Industry. They were hosted by Tan Sri Syed Faisal Albar, Chairman of Proton, along with Roslan Abdullah, Proton’s Deputy Chief Executive Officer; Amr Abou-Elseoud, Board Member of Ezz Elarab Elsewedy Automotive Factories, Egypt; and Steven Xu, Director of International Sales at Proton.
Highlighting the importance of this expansion, Roslan Abdullah stated, “Export sales are a crucial focus for Proton as we pursue our long-term objectives. With the Malaysian automotive market reaching saturation, growth opportunities will increasingly come from overseas markets, where consumer demand is expected to rise. The addition of CKD operations in Egypt now brings the total number of Proton’s international CKD and SKD plants to five.”
Proton has been active in the Egyptian market since 2004 through its partner, Ezz Elarab. Over the years, nearly 17,000 completely built-up (CBU) units have been exported to Egypt, with a forecast of over 1,400 units for 2024. Local assembly is set to begin in December at the Ezz Elarab Elsewedy Automotive Factories (ESAF) plant, with a target volume of 5,000 units of the Proton Saga by 2025.
“Local assembly of the Proton Saga aligns with the Egyptian government’s goal of reducing CBU imports while promoting local manufacturing. This step opens up potential for further capacity expansion, especially with the introduction of new models. Our aim is to establish Egypt as a hub for Proton vehicle exports in the North African region,” said Steven Xu, Director of International Sales at Proton.
Proton projects revenue of RM570 million from the export of CKD packs to Egypt over the next three years, ending in 2026, along with an additional RM20 million from parts export activities. Concurrently, the local Egyptian economy is expected to gain up to RM180 million in duties and taxes from the assembly of Proton vehicles.
Steven Xu further emphasized, “Proton is Malaysia’s leading vehicle exporter, with export sales currently comprising about 3% of our total sales. However, we are committed to increasing this figure by focusing on key areas such as cost reduction and supply chain development. Collaborating with international partners will yield long-term benefits for both Proton and the automotive industries in our overseas markets.”