Local assembly of Proton Sagas in Egypt to start in December 2024, 120 CKD packs shipped off

Proton has announced that its popular - even iconic - sedan, the Saga, will be commencing locally assembly in Egypt, marking an important milestone for the company’s global expansion. The project involves an investment of over USD15 million (approximately RM65 million), and aims to produce up to 50,000 units in the coming years.

Ezz Elsewedy Automotive Factories (ESAF), which partnered with Proton’s local distributor, Ezz Elarab, in November 2023, will be heading up the CKD operations in Egypt and, ahead to its commencement, Proton has already shipped the first batch of 120 CKD packs to the country.

This move makes Egypt Proton’s fifth overseas CKD/SKD market, joining Pakistan, Bangladesh, Sri Lanka, and Kenya. The company aims to increase its export volume to 10,000 units in the coming years, building on the 5,000 units exported in 2022 across 20 countries.

Currently, the Saga is the only Proton model sold in Egypt, with three variants of the facelifted sedan offered since December 2020, all units sold in Egypt sold until now were fully imported (CBU) from Malaysia.

Proton has been present in Egypt since 2004, having exported nearly 17,000 CBU units to the country. With the start of local assembly in scheduled for December, Proton expects to ship 1,400 units in 2024, with sales projected to increase to 5,000 units by 2025.

Roslan Abdullah, Deputy CEO of Proton, emphasized the importance of export sales in the company’s long-term strategy. He noted that as the Malaysian automotive market reaches saturation, Proton is focusing on overseas markets where demand is expected to grow. “The addition of CKD operations in Egypt brings the number of plants involved in CKD and SKD activities for Proton outside of Malaysia to five,” he stated.

The start of CKD operations in Egypt will also allow Proton to establish a regional hub for producing and exporting vehicles to other parts of the Middle East and North Africa (MENA) region.

Steven Xu, Proton’s director of international sales, added that local assembly in Egypt will help Proton comply with the Egyptian government’s push to limit CBU imports and promote local manufacturing and highlighted its strategic significance as the Malaysian automaker increases its global reach.

Proton expects to generate RM570 million in revenue from exporting CKD packs to Egypt over the next three years, with an additional RM20 million from parts exports. Egypt’s local economy is set to benefit as well with up to RM180 million in duties and taxes from Proton’s operations.