Proton (PeRusahaan OTOmobil Nasional) Holdings Berhad, established in 1983 was the brain child of former prime minister Tun Dr. Mahatir Mohamad. The first production car, Proton Saga was manufactured in September 1985. Back then, Proton was at least 20% cheaper than non-national makes in the same 1.3 to 1.5 litre class. By 1988, Proton had overtaken all other makes and grabbed 73% of the passenger car market.
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Perodua (Perusahaan Otomobil Kedua) Berhad, established in 1983, with shareholders:
- UMW Corporation Sdn Bhd (38%)
- Daihatsu Motor Co. Ltd. (20%)
- MBM Resources Bhd (20%)
- PNB Equity Resources Corporation Sdn Bhd (10%)
- Mitsui & Co. Ltd (7%)
- Daihatsu (Malaysia) Sdn Bhd (5%)
The first production car, Perodua Kancil was launched in late 1994. Perodua mainly produces small-compact cars and therefore does not actually compete with Proton for the same market niche. Perodua does not actually produce any in house designs or engineering for the main components (i.e engine, transmission). All Perodua cars are badge engineered from Daihatsu. Perodua cars have won multiple awards (here).
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I used to drive a Perodua Kenari, my wife owns a Kancil and my brother just ordered a Myvi. Perodua has good cars. Proton is government backed. However, that is not enough:
Banks set to increase interest on borrowings for non-national car buyers [source]
Problem: The current reasoning for the hike in loan rates for non-national cars is to make up for provisions set aside for losses and administrative costs. (that means, loans that are not serviced)
Solution: Increase the interest rate for non-national cars.
Genius...
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