Proton Holding Bhd’s (Proton) collaboration with India’s premier automobile manufacturing company, Hindustan Motors Ltd (Hindustan Motors) may bring about more synergistic benefits to the former.
MARKET POTENTIAL: OSK Research continues to be positive on Proton’s foray into the Indian market as India is one of the world’s least penetrated car markets in the world, with an average of 15 vehicles per 1,000 persons.
According to OSK Research Sdn Bhd (OSK Research), given the lack of new affordable models from Hindustan Motors’ stable currently, the collaboration with Proton would likely see more commitment from Hindustan Motors as this could potentially revive the Indian automaker and help it to garner market share, given the slew of fresh product offerings at comparably more affordable pricings from Proton’s model line-ups.
Furthermore, with Malaysia being closer to India, the imported kits would be comparatively cheaper than importing from Japan.
The research house understood that Proton intended to replicate the business concept that it currently has with China’s Youngman, from which Proton would be importing kits for the assembly of the complete knock down (CKD) vehicles.
OSK Research noted that development of its potential India foray was likely see a delay as to date, no deal has been finalised.
Nonetheless, the research house continued to be positive on Proton’s foray into the Indian market as India was one of the world’s least penetrated car markets in the world, with an average of 15 vehicles per 1,000 persons.
OSK Research said with roughly 75 per cent to 80 per cent of India’s vehicle volume comprising two wheelers, this provided an opportune moment for Proton to capture the market potential for motorcyclists upgrading to small cars given the long delay in owing a Tata Nano due to heavy demand.-theborneopost.
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