Malaysia's Proton opens first EV plant with 20,000-unit capacity

Malaysian automaker Proton launched the country’s first dedicated EV assembly plant in Tanjong Malim, Perak, on September 4, 2025, with Prime Minister Anwar Ibrahim attending the event.

The new facility, located within the Automotive High Tech Valley, will start full-scale production this month, seven months after its groundbreaking.

The plant’s first phase cost 47 million ringgit (around US$11 million) and can produce up to 20,000 EVs per year, with plans to scale up to a 45,000-unit annual capacity.

Proton will assemble its e.MAS 7 and e.MAS 5 EV models at the site, and also plans to locally assemble premium brands through its partnership with China’s Geely.

The facility combines automated equipment with trained operators, and is expected to create more than 200 jobs as production ramps up.

🔗 Source: Proton

🧠 Food for thought

Implications, context, and why it matters.

Malaysia maintains automotive industry leadership through strategic EV transition

Malaysia established Southeast Asia’s first automotive industry nearly three decades before Thailand, beginning with Ford’s assembly operations in the 1940s and launching its first locally assembled car, the Volvo 144, in 19672.
The new Proton EV plant represents a continuation of this pioneering approach, being Malaysia’s first dedicated EV assembly facility and positioning the country ahead of regional competitors in the electric transition.
This strategic timing mirrors Malaysia’s historical pattern of early automotive industrialization, from the Volvo plant in 1966 (still operating today) to establishing Proton in 1983 and Perodua in 19942 3.
The RM82 million investment and 45,000-unit annual capacity demonstrate significant commitment to maintaining Malaysia’s position as the third-largest car market in ASEAN2.

Chinese partnership positions Proton competitively in price-sensitive EV market

Chinese EV brands captured over 57% of Southeast Asian EV sales through aggressive pricing strategies, with discounts of 8% to 20% driving significant market growth in the first half of 20254.
Proton’s technical partnership with Geely provides access to Chinese EV technology and manufacturing expertise, potentially enabling competitive pricing against other Chinese brands like BYD and GAC Group that are dominating regional markets4.
The partnership allows Proton to assemble premium Chinese brands like Zeekr locally, which could help the company compete in multiple market segments while leveraging established distribution networks1.
This strategy addresses the challenge facing Japanese automakers, whose market share in the region declined from 68.2% to 63.9% in 2024 as Chinese competitors gained ground with lower-priced EVs4.