KUALA LUMPUR: Proton Holdings Bhd is in negotiations with several foreign parties to develop its own high performance engines, managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said.

“Work is under way to explore the next 1.8- and 2.0-litre engines. We are in talks with several foreign parties and will announce something by mid-year,” he told reporters after the unveiling of the new GEN.2 yesterday.

Moving into higher-performance engines was a must for Proton to remain competitive, he said, adding that the national carmaker was also considering developing diesel-powered engines.

“Going forward, the next generation and higher segment (Proton) cars will need 1.8- and a 2.0-litre derivatives. A lot of markets are migrating from petrol to diesel and it is important for Proton not to be left behind,” he said.

“The markets that we want to penetrate like India and China have high demand for diesel and for us not to have diesel engines incorporated in our cars would be a mistake.”

He said Proton was only considering foreign partners as local parties would not be able to provide Proton the desired technology to move forward.

“I do not think a local partner can offer us the capability to develop a ‘next level’ engine,” he said, adding that an eventual tie-up should finalise Proton’s engine product planning for the next five years.

On Proton’s recent decision to make inroads in India, Syed Zainal said: “We are focusing a lot of efforts to go there and will make an announcement when the time is right.”

Meanwhile, he said Proton was targeting to sell at least 1,500 units of the facelifted GEN.2 monthly.

“We have set the target based on the response for the Persona and new Saga,” he said, adding that about 38,000 bookings for the new Saga had been registered since its launch in January.

Syed Zainal said should demand exceed expectation, Proton would ramp up capacity to produce 2,500 to 3,000 units of the new GEN.2 per month.

The car, which was launched late last year at the Thailand Motor Show, would be rolled out for export to Britain, Australia, Indonesia and the Middle East this year, he said.

Syed Zainal added that the biggest market for the (old) GEN.2 was Iran, with 4,000 to 5,000 units being exported yearly.

Targeted at the younger buyer, the new GEN.2 comes with a new sporty look and a (new) CAM profile-switching (CPS) engine that boasts better pick up compared with its predecessor.

The car comes in both manual and automatic transmission and is available in four colours. Prices range from RM53,488 to RM60,488 (on the road).

Syed Zainal said the GEN.2 would be available in showrooms by the end of the week.

Going forward, Proton is gearing up for the launch of its first MPV, slated for March next year.

 
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