Proton vendor issues due to slow SUV sales caused by Chinese rivals – reduce production to clear stock

A couple of months ago, it was reported that Proton’s vendors were facing “severe financial strain” due to the national carmaker failing to honour the number of parts it ordered for its SUV models – the X50, X70 and X90. We raised this issue during a Q&A session after yesterday’s media briefing, and the company’s deputy CEO Roslan Abdullah stepped in to give his comments on the situation.
Roslan said the problem stemmed from an unexpected slowing of sales due to the influx of new competitors from China, particularly Chery. “The [current] situation, with competitors coming into the same product [segment], their price gap not more than RM5,000, impacts our [ability] to honour [orders].
“When we planned [our production] for the X50 in 2020, for example, the [Honda] HR-V was the only competitor. But as of now, I think some of you just came back from China [after Auto China 2024 in Beijing], you know how many cars will come and [take a piece of the pie],” he said, adding that Proton was adjusting production to clear outstanding stock, hence the reduction in orders.
A different take was offered by director of manufacturing Mohd Shaharuddin, who said that Proton has a rule of committing to one month of full orders and five months of forecast orders, with a fluctuation not exceeding five per cent each month.
However, the most recent issue with not honouring orders was not caused by Proton not wanting to build the cars, but certain suppliers not ..








