PROTON NEEDS SALES OF 250,000 ANNUALLY TO REMAIN WITHOUT PARTNER

How Proton would react to this news?

National car maker Proton will need to step up sales to about 250,000 units annually for it to remain independently viable, says an industry analyst. Proton will need a strategic partner in the next 3-5 years if it is not able to do this, said Frost & Sullivan head of automotive & transportation practice,Asia Pacific, Kavan Mukhtyar."The existing annual volume of around 100,000 units is financially a bit challenging for it to keep developing new models," he told a media briefing onthe auto industry's outlook for this year. Frost & Sullivan forecasts total industry sale volume in Malaysia to increase seven percent to 521,200 units this year from an estimated 487,000units in 2007.The growth will be driven by sales replacement cars, he said, adding that a substantial number of people who bought their vehicles between 2001 and 2003 maybe looking at replacing their cars in 2008. He said the consumers are more likely to replace their cars near the end of their loan period if their outstanding loans can be covered by the trade-in value of their vehicles.

Source: Bursa News from hdbsib.com