Proton to double local parts purchase to RM8 billion by 2030, including technology transfer to vendors

Proton aims to more than double local procurement value from Malaysian vendors to RM8 billion by 2030, from RM4 billion attained last year, the carmaker has stated. This is aimed at adding economic value, facilitate technology transfer to local vendors as well as to create more opportunities for skilled employment, according to Proton.

Proton’s sales volume targets will go towards that increase in local procurement, as it has outlined its aim of selling 200,000 units this year, and to become Malaysia’s best-seller by 2029. The top spot is currently held by Perodua, which is placed second in ASEAN.

Proton launched its dedicated EV plant in Tanjong Malim last September, where the eMas 7 is locally assembled and the smaller eMas 5 will follow suit.

The national carmaker bought RM3.2 billion in parts and components from Malaysian vendors in 2025, then-minister of investment, trade and industry Tengku Datuk Seri Zafrul Abdul Aziz said last November. Proton’s localisation programme has introduced 18 new technologies and forged joint ventures in areas such as fuel pumps, electronic gearshift modules and CVTs, according to a Bernama report at the time.

Between the national carmakers, Proton has a considerable gap to close to Perodua in terms of localised parts, however, as the second national carmaker has purchased RM11 billion in parts from local vendors last year. This is reflected in vehicle sales for the two brands, as Perodua sold 359,904 units in 2025, with a typical localisation rate of 95%, compared to Proton’s 157,976 units sold last year.