ASEAN automobile sector update.
Geely Automobile is expected to use ASEAN as a springboard into global markets having formally completed the deal on June 23 to acquire a 49.9% minority stake in Malaysia’s ailing Proton car brand from DRB-Hicom, the Malaysian conglomerate that retains the remaining 51%. The Chinese manufacturer said in early June that Proton plants would produce 500,000 vehicles by 2020, up from 72,000 in 2016.
Chinese technology transfers will add value to ASEAN’s auto industry, which needs to move beyond basic assembly.
Malaysia will stay an important producer, but will play a secondary role to regional hubs Thailand and Indonesia.
China automakers will need to invest in marketing to make their brands better known in South-east Asia.
