The recently signed Suzuki Proton MoU, will spell benefits for Suzuki’s Indian subsidiary Maruti Suzuki – as boost in exports to Malaysia are on the cards.
The terms of agreement indicate that Suzuki will be supplying completely knocked down kits to Proton which Proton will assemble at their plant in Malaysia and sell under their own brand. The MoU also provides Proton access to Suzuki models, platforms and powertrains besides automotive technologies and technical support where design and development is concerned.
Proton is Malaysia’s first automaker established in 1983. The company occupies a 17% market share and in 2014 saw total sales to the tune of 116,000 units. The first model as a CBU to make its way to be assembled at Proton’s Tanjung Malim plant will be a compact passenger car while further models will be decided in due course after talks between Proton and SMC (Suzuki Motor Corporation) advance.
The partnership between SMC and Proton will allow Suzuki to establish a foothold in Malaysia while Proton will be able to boost market share and compete head on with Perodua, which produces compact cars and is at present the No 1 car brand in Malaysia.
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The ‘Make in India’ mantra will also work for Maruti Suzuki India Limited as it will boost exports and allow the company to expand its reach. Most probable models making their way to Malaysia via the CCKD route will be the twin Alto models, Celerio and WagonR. The MoU could also spell resurrection of Maruti Suzuki A-Star which was discontinued last year.