Proton

proton
History

A brief history about proton: Proton, short for *Perusahaan Otomobil Nasional* or *National Automobile Enterprise*, is Malaysia’s first national car manufacturer. It was founded in 1983 as part of a government initiative led by Prime Minister Tun Mahathir Mohamad, who envisioned building the country’s industrial capability and national pride through automotive production. The project aimed to develop local expertise while reducing Malaysia’s dependence on foreign imports.

In its early years, Proton relied heavily on technology and parts supplied by Mitsubishi Motors of Japan. This collaboration shaped the company’s first model, the *Proton Saga*, launched in 1985. The Saga quickly became a symbol of national progress and was warmly received in the domestic market. Within a year, Proton began exporting to Bangladesh, and by 1987, over 50,000 units had been produced.

Proton’s international ambitions grew rapidly. In 1989, the company entered the United Kingdom with the *Saga*, marking Malaysia’s first major automotive export success. As production numbers surpassed 150,000 units, Proton continued investing in infrastructure, culminating in the opening of its own engine assembly plant in 1991. This move signaled a step toward greater independence in manufacturing and engineering.

Throughout the 1990s, Proton expanded its lineup with models such as the *Ishwara* (1992), *Wira* (1993), *Satria* (1994), and *Tiara* (1996), many of which were based on Mitsubishi platforms. The *Wira* became one of Proton’s best-selling vehicles, solidifying the brand’s presence across Asia and beyond. In 1996, a major milestone was reached when Proton acquired *Lotus Cars*, the British performance and engineering firm. This acquisition injected world-class technology and expertise into Proton’s research and development, paving the way for more advanced and sportier models.

The early 2000s saw Proton exploring new global partnerships to remain competitive. A collaboration with Volkswagen AG was announced in 2004, aiming to bring German engineering into Proton’s lineup and utilize Malaysia as a production hub. However, after two years of negotiations, the partnership was dissolved in 2006 due to disagreements over ownership and strategic direction.

That same year proved challenging for Proton, as the company reported a $169 million loss amid declining sales and rising competition. Rumors circulated that Volkswagen was considering acquiring a majority stake, but Proton’s leadership instead chose to restructure internally and pursue recovery independently.

Despite the difficulties, Proton remains a key player in Malaysia’s automotive industry and a significant symbol of the nation’s ambition for technological self-sufficiency. Its legacy reflects Malaysia’s determination to compete on the global stage while fostering domestic innovation and industrial growth.