Proton has started construction of a new electric vehicle (EV) production plant at its Tanjong Malim base, marked today by a ceremony officiated by Perak Menteri Besar Datuk Seri Saarani Mohamad. The MYR 82 million (US$ 18.4 million) factory has a first phase initial capacity of 20,000 units per annum and is targeted for completion by end-2025

The carmaker says that the factory will produce 'multiple NEV models for domestic and export market' based on Geely's Global Modular Architecture (GMA) platform starting with the Proton eMas 7. Launched in December, Proton's first EV is based on the Geely Galaxy E5 and the SUV is currently a CBU import from China.

Proton says that this factory is Malaysia's first dedicated EV plant, with the key word there being dedicated (EV production could share the same roof with ICE models elsewhere). Local EV production will start just before all of the carmaker's manufacturing operations are fully consolidated in Tanjong Malim, signifying a significant accomplishment of the Automotive High Tech Valley (AHTV).

Speaking of AHTV, over 200 new jobs will be created and there will be a 'knock-on effect to the AHTV vendor community', Proton says. There are plans for a second phase, which will boost production capacity to 45,000 units a year, if there's sufficient demand.

"Once completed, this new factory will focus on producing the Proton eMas 7 as well as future NEV offerings as Proton expands its model range. Ultimately, we hope our success will establish a modern and capable automotive ecosystem to encourage more OEMs to consider Malaysia and AHTV as a regional base for EVs," said Proton CEO Dr Li Chunrong.

Proton has already confirmed that a new GMA model will be launched this year, and this could be either an eMas 5 or eMas 3. In its domestic market, the Galaxy E5 has a plug-in hybrid sister called the Galaxy Starship 7, so this could be a future possibility too. By the way, NEV is a Chinese term for New Energy Vehicles, which includes PHEVs.

So, there will be exports of the CKD Proton eMas 7, but it won't be to Indonesia. At the launch of the Geely EX5 in the republic last month, Geely said that the Proton eMas 7 twin will be manufactured at a new plant in Bekasi from Q2 2025, which is earlier than the CKD eMas 7 target. Proton has said that the eMas 7 will be launched in Mauritius, Nepal, Singapore and Trinidad and Tobago. Brunei too, most possibly.

Currently, the CBU eMas 7 is priced at MYR 105,800 for the Prime and MYR 119,800 for the Premium, after an early bird discount of MYR 4,000 for the first 6,000 buyers. It's a lot of car for the money as it is, but could CKD production further lower the RRP? CKD EVs are allowed to be priced below MYR 100,000, which is the government-mandated floor price for CBU imported EVs.