Proton Launches EV Plant as Malaysia Accelerates Electric Vehicle Drive

Malaysian automotive manufacturer Proton has officially launched its inaugural electric vehicle assembly facility on Thursday, marking a significant milestone in the Southeast Asian nation’s ambitious plans to establish itself as a regional hub for electric mobility.

The state-of-the-art facility, situated within Perak state’s Automotive High-Tech Valley in western Malaysia - the country’s premier automotive manufacturing centre - has been designed with an initial annual production capacity of 20,000 vehicles. However, the company has indicated that this capacity could potentially be expanded to accommodate up to 45,000 units per year as demand grows, according to Proton’s official statement.

First Malaysian EVs Roll Off Production Line

The facility will commence production with the e.MAS 7, Proton’s flagship electric SUV and the nation’s first domestically-branded electric vehicle. This will be followed by the e.MAS 5, positioned as the company’s entry-level electric offering. The 'e.MAS' brand, established in July 2024, stands for "Electrifying Malaysia," with the 'e' symbol denoting EVs and MAS serving as an abbreviation for the country.

The Proton e.MAS 7 was officially launched by Prime Minister Anwar Ibrahim in December 2024, marking both the company’s and the nation’s first electric vehicle. The vehicle has been co-developed with Chinese automotive giant Geely, leveraging advanced technology and expertise from the partnership.

Strategic Chinese Partnership

Proton’s ownership structure reflects Malaysia’s growing economic ties with China. The company is majority-owned by Malaysian conglomerate DRB HICOM, whilst Chinese automotive group Zhejiang Geely Holding maintains a substantial 49.9% stake. This partnership has been instrumental in bringing advanced electric vehicle technology to Malaysia.

Speaking at the plant’s launch ceremony, Prime Minister Anwar Ibrahim emphasised the facility’s significance as a symbol of Malaysia-China collaboration. He urged Geely to increase its investment in the automotive hub, stating: "We want... Geely to use this opportunity to establish not only a factory to produce cars but also a centre of excellence for training and education."

Malaysia’s Ambitious EV Targets

The launch comes as Malaysia pursues an aggressive electrification strategy for its automotive sector. The government has set a target for electric vehicles to constitute 20% of new car sales by 2030, a significant leap from the current 5.11% of total annual volume as of September 2024.

Looking further ahead, Malaysia’s long-term vision sees EVs representing 15% of total industry volume by 2030, with an ambitious target of 80% by 2050. The EV market is projected to generate MYR 1.2 billion in revenue by 2029, with annual sales reaching 16,520 units.

Government Support and Incentives

To achieve these targets, the Malaysian government has implemented a comprehensive suite of incentives and support mechanisms. These include exemptions from import duties, excise taxes, and sales taxes to lower the cost of purchasing electric vehicles.

For infrastructure development, the government offers individuals RM2,500 in annual income tax relief through to 2027 for the installation, rental, and purchase of EV charging equipment or subscription fees. Additional support includes up to RM2,400 in further incentives for various aspects of EV adoption.

Expanding Dealer Network

During the launch event, the first 17 Proton EV dealers formalised their agreements, with applications now open for interested dealers and an initial target of 30 outlets by 2025, demonstrating the company’s commitment to building a robust retail network for its electric vehicles.

Regional Context

Malaysia’s EV push comes amid growing competition in Southeast Asia’s electric vehicle market, with established players like BYD and Tesla already making inroads. The country’s strategic positioning, combined with its existing automotive manufacturing expertise and growing Chinese partnerships, positions it well to capture a significant share of the regional EV market.

The successful launch of Proton’s EV facility represents not just a corporate milestone, but a crucial step in Malaysia’s broader economic transformation towards sustainable mobility and advanced manufacturing capabilities. As the nation works towards its 2030 targets, the facility stands as a tangible symbol of Malaysia’s commitment to leading Southeast Asia’s electric vehicle revolution.