Malaysia is stepping forward in the electric vehicle (EV) industry by launching its first national EV assembly plant. Proton, one of the country’s leading automotive manufacturers, has opened the factory to boost both domestic EV production and the country’s ambition to become a regional automotive powerhouse.
The new facility is situated in the Automotive High-Tech Valley, Perak, a dedicated hub for automotive technology in Malaysia. This investment strengthens Proton’s position and signals the country’s growing commitment to clean energy mobility across Southeast Asia.
Proton’s Ambition to Lead the ASEAN EV Market
The assembly plant starts with a production capacity of 20,000 EV units annually. Proton projects that this figure can be expanded to 45,000 vehicles per year as demand grows. This capacity is designed not only to serve Malaysia’s domestic market but also to supply other Southeast Asian countries, aiming to become a dominant player within ASEAN.
The first vehicle model manufactured at this facility is the e.MAS 7. Proton intends to follow up with the e.MAS 5, an entry-level EV model targeting wider adoption, especially within emerging ASEAN markets. Proton’s vision is to quickly scale up its capabilities and market reach in the electric vehicle ecosystem.
Strategic Partnerships Strengthening Proton
Proton is now majority-owned by Malaysia’s DRB-HICOM, while the Chinese conglomerate Zhejiang Geely Holding Group holds nearly half the shares at 49.9%. This collaboration is crucial, as it brings together Proton’s deep local market understanding and Geely’s advanced EV technologies and global supply chain.
During the inauguration of the factory, Malaysia’s Prime Minister emphasized the significance of this Malaysia-China cooperation, stating that the partnership exemplifies a fast-track for expertise transfer and economic growth. He urged Geely to further invest in the area, not just for manufacturing vehicles, but also to establish a training and education center focused on automotive technology.
Malaysia’s Ambitious EV Roadmap
The government of Malaysia is targeting to turn the nation into a regional hub for EVs in Southeast Asia. One of the key policy targets is achieving a 20% share for electric and hybrid vehicles out of all new car sales by the end of the decade. This objective is supported by incentives for investors, infrastructure development, and regulatory reforms to accelerate zero-emission transportation.
Authorities are encouraging both automakers and consumers to pivot to electric mobility. With the opening of Proton’s plant, the momentum is expected to increase, especially as the facility will produce affordable models for a price-sensitive ASEAN market.
Electric Vehicle Market Interest and Consumer Preferences
A recent survey by Praxis Indonesia highlights what drives consumer decisions in the EV market. Among 1,200 EV users in major Indonesian cities, as many as 98% said they rely on recommendations and real-life user experiences before buying an EV. This shows that the market is influenced as much by community trust as by the product features themselves.
Key considerations for EV buyers in Indonesia, according to the survey, include:
- Availability and distribution of EV charging infrastructure
- Battery durability and longevity
- Vehicle price and financing options
- Brand reputation and reliability
- Recommendations from friends, community, and social circles
Director of Public Affairs at Praxis Indonesia explained that the adoption of electric vehicles depends not only on technological advancements but also on public communication and policy synergy. Policy makers and industry leaders must recognize the importance of these factors to encourage further adoption.
Proton’s EV Plant—Impact on Local Economy and Workforce
Proton’s new EV plant is set to generate employment and stimulate the local economy in Perak. The plant will also help foster a skilled workforce, aligning with the government’s desire to turn the region into a center of excellence for automotive training and R&D. Partnerships with foreign investors like Geely can accelerate knowledge transfer and promote innovation in Malaysia’s automotive sector.
As production ramps up, Proton is expected to collaborate further with regional supply chain partners, expanding opportunities for local component manufacturers. This is an important move to create a sustainable automotive value chain in Malaysia and adjoining ASEAN countries.
Competitive Landscape in ASEAN’s EV Sector
Proton’s new initiative places it in direct competition with global and regional carmakers in the emerging Southeast Asian EV market. Several countries within ASEAN are implementing policies to attract EV investments and encourage local adoption, such as tax breaks, import duty exemptions, and support for charging infrastructure.
Malaysia is working to stay ahead by combining local expertise, foreign investment, and government incentives. With Proton’s assembly line now operational, Malaysia has a strong platform to compete with Thailand, Indonesia, and Vietnam in the battle for EV manufacturing dominance.
Outlook for Electric Vehicles in the Region
The success of Proton’s new facility and local EV models like the e.MAS 7 and e.MAS 5 will depend on market response and policy stability. If consumer demand rises, supported by accessible charging networks and attractive financing, Proton can quickly scale exports and become a major ASEAN EV supplier.
The rise in electric vehicle adoption reflects both global trends and regional ambitions for cleaner, more sustainable transport. As Proton builds its foundation in the Automotive High-Tech Valley, industry observers expect a ripple effect that could boost Malaysia’s standing in the global automotive sector. This development marks a pivotal step for the country and signals a new chapter for Southeast Asia’s transition towards electric mobility.
