Proton entered Indonesia a decade ago as a taxi manufacturer. "When you say ‘Proton' here, people think taxi," said a source. "Its image is tarnished in the local market. Indonesians are more status-conscious than Malaysians, so Proton cannot rely on tactical advertising here."
Proton's foray into Indonesia's mass market, believed to be in March, will pit the marque against category leaders Toyota and Honda, who together account for more than 80 per cent of passenger-car sales. In Malaysia, Proton lost its grip last year against an increase in foreign players and a liberalised auto market. Its market share plummeted from 55 per cent in 2001 to 26 per cent last year, and the auto manufacturer has been engaged in discussions with potential foreign partners such as GM and Volkswagen.
Overall, auto sales in Malaysia fell nearly 10 per cent in the first 11 months of last year.
