Proton and Smart to explore CKD local assembly of EVs at Tanjung Malim

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Proton and Smart to explore CKD local assembly of EVs at Tanjung Malim
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Through this new deal, Proton is one step closer in its aim to turn Malaysia into a regional EV hub. So, can we expect a cheaper Smart #1 EV soon?

are now looking into the possibility of setting up a local assembly operation for Smart models in Malaysia. A feasibility study will be done at Proton’s Tanjung Malim plant very soon.

This new development is a direct result of the new memorandum of agreement that both companies have just signed in China yesterday. If the plan goes through, this would increase Proton’s involvement in the Smart brand from just beingThat being said, this has always been Proton’s intention according to its CEO, Dr Li Chunrong.

As an automotive manufacturer, Proton always intended to raise our involvement with smart beyond distribution for the ASEAN region as there are many efficiencies to take advantage of because both companies are members of the Geely Group. After the launch of the Proton X90, our first NEV, we are excited by the opportunity to learn more about EVs from our collaboration with Smart. Going forwards, all our production activities will be centred at the Automotive High Tech Valley in Tanjung Malim, which will also help in our goal to turn Malaysia into a regional EV hub.

Grand aspirations aside, having a local Completely Knocked-Down assembly would make sense in the long run for Proton since CKD operations allow manufacturers to obtain certain incentives and tax breaks from the government. After all, the tax incentives for the fully-imported Completely Build-Up EVs will only lastOf course, CKD models usually have a significantly lower price tag than their CBU counterparts.

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