Proton doubles down on plan to make their own EV by 2027

Perusahaan Otomobil Nasional Bhd, better known as Proton, has finally confirmed that they will be looking to launch and manufacture their own electric vehicle by 2027. According to Proton’s deputy CEO Roslan Abdullah, the national car maker has already begun discussions with potential partners as part of their 2027 EV target.

As reported by The Edge, Roslan notes that for now Proton will be trying to get more experience in the EV sector. This will likely come from their partnership with Smart Automobile, which they had signed a deal with back in August to be the distributor for the Smart #1 electric vehicle. Proton had previously already confirmed that they will be looking to begin selling the Smart #1 by the end of next year, and in September had even formed Proton New Energy Technology, a new company to handle not just Smart’s EVs, but also future Proton ‘new energy vehicles’ that includes hybrids and plug-in hybrids.

“The next five years will give us ample time to determine which technology is most acceptable, easy to maintain, and affordable for consumers and us,” – Roslan Abdullah, Proton deputy CEO

Roslan added that they’ll using their collaboration with Smart to not just gain knowledge on the distribution of EVs, but also to learn more about the assembly of electric vehicles domestically. He stated that in the meantime, the challenge appears to be getting more support for EVs from the government as well as requiring customers to shift towards EVs. The latter in particular will see a number of challenges such as the lack of affordable EV options, a fragmented EV charging infrastructure as well as a lack of talent development and investment in the EV sector.

This isn’t to say that Proton’s 2027 EV plan is a completely new goal of course. Back in April, a research paper published by Hong Leong Investment Bank’s analyst Daniel Wong noted that Proton was targeting a 2027 launch date for its EV. This was said to be the final piece of the puzzle after firstly taking a few steps into the mild hybrids segment. With Proton’s Roslan Abdullah confirming their 2027 plan though, it’s now up to the national car maker to realise these goals.

Proton might also be getting a helping hand from the government, one of the challenges Roslan had mentioned. In the lead up to the 15th General Election, Barisan Nasional’s Ahmad Zahid bin Hamidi revealed the coalition’s manifesto which included the abolishment of Approved Permits (AP) for electric vehicles. These APs are essentially import permits which if gone may lead to cheaper EVs in the Malaysian market.

During the tabling of Budget 2023, then-Finance Minister Tengku Zafrul Aziz had also announced the exemption of the import tax and excise duties for EVs till the end of 2024, on top of an AP fee exemption for EV importers until the end of next year.