KUALA LUMPUR (Oct 6): Japan's fourth largest carmaker Suzuki Motor Corp is reported to be considering an investment in Proton Holdings Bhd, in a move to expand its operations in the Southeast Asian region.

According to a news report, Suzuki could acquire more than 50% stake in Proton, which will turn Proton into its subsidiary. It added that executives of Proton have already visited Japan and started to discuss the matter.

The report added that Proton is expected to make a decision by March next year, quoting a source close to the matter.

To recap, Proton had shortlisted five foreign candidates as its potential strategic partner as at the end of September, with the final decision to be made before mid-2017.

"We have obtained proposals from several interested parties and we are at a stage of reviewing and understanding [their] proposals. We will then decide which one would benefit us in the long run based on what these companies have to offer.

"Rest assured that we are in discussions and setting up meetings with these companies, and we hope to come up with a final decision before mid-2017. In fact, it would be much better if this process can be concluded earlier," said Proton chairman Datuk Seri Syed Faisal Albar at the launch of the new Proton Saga last week.

Securing a strategic foreign partner was among the conditions set for the company to receive a RM1.5 billion soft loan from the government earlier this year.

Syed Faisal, who is also the group managing director of DRB-Hicom Bhd, mentioned that the parties interested in the stake acquisition "have a wide reach overseas".

Meanwhile, another report quoted four major automotive players as potential candidates, namely Volkswagen AG's Skoda unit, Renault SA and PSA Group, besides Suzuki. Chinese automaker Geely — which owns Volvo — is also said to be bidding to collaborate with Proton.