PROTON embarks on its electrification journey, with major changes to its operations to come.
PROTON has announced the e.MAS 7, its first fully electric vehicle, priced at about RM109k (USD 24,000) for the Prime model. It has since recorded over 2,500 bookings as of Dec 26 2024, according to a PROTON statement. Back in September 2022, it set up a new subsidiary called PROTON New Energy Technology Sdn Bhd (PRO-NET) to spearhead the sales and distribution of its EV range.
This is a significant step for the electrification of our local automotive sector, given that our national car makers would likely be the key manufacturers to drive mass adoption of EVs. While still not a sub-100k car, the introduction of the e.MAS 7 will potentially appeal to the broader customer segment compared to the luxury brands that have had EV offerings for some time now.
What follows is an email interview with Salawati Mohd Yusoff, Chief Branding Officer of PRO-NET.
On PROTON’s brand positioning
Q: There seems to be some competition between this new EV model and existing PROTON SUVs, namely the X50 which competes in the similar price range with the higher variant e.MAS 7. Taking sustainability considerations into account, would PROTON steer customers towards picking an EV over one of the ICE models?
A: Taking sustainability into account, PROTON aims to offer customers a wider range of choices to suit their needs and readiness. For those prepared and equipped to embrace the EV journey, the launch of the e.MAS7 represents an exciting and accessible option. As a national brand, PROTON is committed to ensuring mobility solutions are available across all segments, catering to diverse preferences and lifestyles. This aligns with our responsibility to provide high-quality, cost-effective options that meet the evolving demands of Malaysian consumers while supporting the transition to sustainable energy solutions.
Q: PRO-NET has been set up to be the exclusive distributor of the e.MAS brand. Does this mean that existing PROTON sales centres will need to set up an entirely new operation if they also want to distribute e.MAS? Or will customers be able to walk into any showroom and see both the ICE and EV options on the floor?
A: Both PRO-NET and PROTON EDAR are subsidiaries of PROTON. While PRO-NET focuses on the new energy vehicle business, PROTON EDAR focuses on the ICE product business. By the end of December 2024, PRO-NET will have set up 30 e.MAS dealerships nationwide, making it the fastest brand to achieve such a number of dealers in such a short time.
Some of our dealers handle both e.MAS and PROTON ICE car businesses, but our requirement is that the facilities and operations teams for each should be separate in order to provide the best customer experience. In some cases, e.MAS dealers are located at the same location as the ICE dealers, but with separate facilities, so customers can visit both EV and ICE cars at the same location.
Q: How is PROTON reconciling its operations having both an ICE and EV offering, in terms of sales focus, future model launches and customer marketing?
A: PROTON is committed to meeting the diverse needs of our customers by offering both ICE and EV models, recognizing that each serves distinct markets with unique challenges and opportunities.
Our subsidiaries, PRO-NET and PROTON EDAR, work collaboratively while focusing on their respective areas of expertise. By leveraging shared insights and resources, we aim to deliver exceptional products and services across all segments. This includes exploring synergies in marketing initiatives and events to ensure a cohesive and customer-centric approach as we navigate the evolving automotive landscape.
Setting up local EV production
Q: I understand that the e.MAS will be CBU imports for now. Please shed some light on the complexities and challenges involved in preparing to produce these vehicles locally.
A: As for local production of EVs, the challenges include establishing a robust domestic supply chain for EV components, developing the necessary manufacturing expertise and infrastructure, and ensuring the availability of skilled labour. Additionally, navigating government regulations and incentives related to EV production and adoption will be crucial.
As we move forward with EV production, comprehensive training and preparation will be provided to ensure our workforce is ready to meet the demands of this transformative shift in the automotive industry.
Q: What are the major considerations in upskilling your workers and production lines?
A: Upskilling our workforce and production lines for EV manufacturing is a top priority. We’re focused on identifying the specific skills needed for EV production, such as working with batteries and high-voltage systems. We’re investing in training programs, upgrading our equipment, and creating a culture of continuous learning to ensure our team is ready for the future of electric vehicles.
Q: Does this add further constraints to your supply chain for maintenance and spare parts etc?
A: Yes, shifting to EV production can add complexity to the supply chain. We’ll need to ensure a reliable and efficient supply of specialised parts like batteries, charging components, and advanced electronics. This may require building new relationships with suppliers and adapting our logistics to handle these unique components.
After sales & service business
Q: One feature of EVs is the lower maintenance cost overall. As we know maintenance makes up a sizeable portion of revenue for automotive companies. How are the after-sales and service centre’s being prepared to adjust to potential lower maintenance cycles and revenue.
A: While EVs generally require less frequent maintenance, PRO-NET’s after-sales and service centers are adapting to this shift. Regardless of revenue, we are focusing on providing high-quality customer service and building long-term relationships with EV owners, recognizing that customer satisfaction will be key in the evolving EV landscape.
Q: What specific measures are being taken to reskill the existing workforce to work with electric vehicles effectively?
A: PRO-NET’s after-sales service teams are undergoing comprehensive training programs to equip them with the specialized knowledge and skills required to maintain and repair EVs. This includes training on high-voltage systems, battery technology, and the use of diagnostic tools specifically designed for electric vehicles. By investing in the skills of its workforce, PRO-NET aims to ensure that customers receive high-quality service and support for their electric vehicles.
EV Infrastructure and consumer confidence
Q: PRO-NET recently announced a condominium EV charging partnership with EV Connection (EVC). In order for EVs to become mainstream, users indeed will need to be able to charge overnight at home, and it is fair to say the majority of e.MAS customers would be high-rise dwellers. Do you foresee any resistance to purchasing e.MAS vehicles due to the lack of charge points in condos/high-rise?
A: The lack of charging infrastructure in condominiums could potentially hinder the widespread adoption of EVs, particularly for high-rise dwellers. However, we are actively working with partners like EVC to address this challenge through initiatives like the “PRONET-EVC Condominium EV Charging Infrastructure Programme.” This program aims to increase the availability of charging points in residential buildings, making EV ownership more convenient and accessible for condominium residents. We believe that by expanding charging infrastructure and addressing the concerns of high-rise dwellers, we can significantly boost the adoption of electric vehicles in Malaysia.
Meanwhile, PRO-NET also provides an integrated charging map via the e.MAS App and e.MAS 7 DHU. This is a unique feature in the EV market, and it is exclusive to e.MAS customers. We have integrated with Malaysia’s top Charge Point Operators (CPO) and cover 85% of public charging points. Customers can easily check the availability of charging points, charge their vehicles, and make payments via our app.
Q: Has PRO-NET done any feasibility studies on how many condos need to be equipped with charge points for it to benefit from the economies of scale?
A: PRO-NET is constantly evaluating the market to understand the optimal level of charging infrastructure needed to drive economies of scale. This includes analysing factors like EV adoption rates, charging demand patterns, and the density of residential buildings in different areas. The goal is to ensure that the investment in charging infrastructure is sustainable and supports the long-term growth of the EV market in Malaysia.
This story is part of our coverage for the KL International Motor Show (KLIMS) 2024, which took place between 5-11 December 2024.
