This article first appeared in The Edge Financial Daily on September 25, 2019

KUALA LUMPUR: Perusahaan Otomobil Nasional Sdn Bhd’s (Proton) plan to return to profitability by 2020 is on track, said its chief executive officer Dr Li Chunrong.

“I can say that our turnaround plan [for Proton] is on track,” Li told reporters after the launch of the automobile manufacturer’s redesigned logo and tagline.

He said Proton continues to aspire to become the number one carmaker in Malaysia and the number three in Asean by 2027, adding its sales growth has been showing a positive trend this year.

Proton’s sales grew 36% to 61,396 units in the January-to-August period, against 45,062 units sold in 2018, pushing its market share for the year to 15.3%. This was despite the 5% contraction in total industry volume in the January-to-August period this year.

On the international front, Li expects Proton to maintain its car sales at 1,000 units in 2019, which was what it achieved in 2018 and 248 units more than the 752 it sold in 2017. Among the countries in which the carmaker is present are Egypt, Pakistan and Brunei.

Li said the good quality of Proton’s products, service and system will gradually help the group export more in future.

The new logo and tagline unveiled by the company yesterday outlined its ambition to be a global, modern and automotive brand. Its tagline was changed to “Inspiring connections”, from “It’s in the drive” previously.

“As we unveil our new logo, we are marking the next chapter in Proton’s journey. Driven by our new ethos, I am proud to say that the past two years have proven that we are capable of making this journey to becoming a modern automotive brand a success,” said Proton Holdings Bhd chairman Datuk Seri Syed Faisal Albar.

Proton’s new branding is driven by three core values, namely innovative technology, reliability and international, he said.

Li said the new logo will first be introduced via the company’s popular sport utility vehicle (SUV), Proton X70, in its completely knocked-down (CKD) version, which is expected to be launched by the fourth quarter of this year.

When asked why it will only be introduced then when Proton has already launched five new models in the first eight months of this year, Li said the group did not want to rush the rebranding exercise.

Furthermore, the emphasis has been on improving the company’s fundamentals, such as solving customer issues, making a better product, upgrading its dealer network and restoring customer trust, he added.