Proton Saga Plus: Can this move lead to new launches from International Manufacturers?

Kuala Lumpur: The only possible way to penetrate into the monopoly of entry-level car market in Malaysia is when other foreign manufacturers like Honda, Toyota, Suzuki, and Hyundai will launch their entry-level vehicles like Honda Brio, Toyota Yaris, Hyundai Eon and Suzuki Alto 800. While global giants like Toyota and Honda enjoy the heavy market share in the upper-entry level segment, most of the car buying penetration in the country lies within the immediate entry-level. This could be attributed as one of the biggest reasons of failure of a big-time Asian manufacturer as a ruling body. It may be high time now that these “foreigners” take drastic measures and launch their very best against Proton and Perodua to break the monopoly.

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However, to produce an entry level dedicated hatchback or sedan at prices which could compete these “brothers of destruction”, all these models need to be CKD in Malaysia. This would mean heavy investment in infrastructure and production, and after all the hard work there is no guarantee if these “newbies” in the market could replace the HUGE social and cultural impact that Proton and Perodua have created over generations now. Hence, launching a direct competitor to these companies in an entry level segment could prove out to be a huge gamble.

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Now comes the long wait where it remains uncertain whether the “big-names” continue playing it safe where there is no imminent competition locally or will they step into the lion's cage and prove just about why they are the elephants of the world.