Proton Holdings (Proton), could be crippled if steps are not taken to protect the local automotive industry in the same way the United States does for its soya bean sector, says former prime minister Tun Dr Mahathir Mohamad (pic).

He said Proton at present faced strong competition due to foreign brands introducing new models on almost a daily basis.

"They (the foreign companies) can sell the cars in Malaysia, even at a loss, as profits can be made elsewhere. Malaysia is still small, hence there needs to be protection for our local automotive industry," he added.

Dr Mahathir told reporters this when asked to comment on a statement by Minister of International Trade and Industry Datuk Seri Mustapa Mohamed in the Dewan Negara on Monday that Proton was facing a slight setback in respect of the export of its models overseas.

He was quoted as saying that the export trend for Proton's models was registering a decline from year to year.

In 2011, the national car manufacturer exported 16,189 units, 13,311 units (2012) and last year, just 5,937 units.

Dr Mahathir was speaking after the launch of a book, A UN Chronicle, at the Institute of Diplomacy and Foreign Relations, in Kuala Lumpur today. The book was authored by Malaysia's former permanent representative to the United Nations, Tan Sri Razali Ismail.

He said Malaysia practiced an open policy, whereby, "anyone who wants to enter, can do so".

"Malaysia's policy now does not just focus on the development of the local automotive industry but also prioritises the consumer (user).

"The consumer does not care what happens to the country, as they only want a low price and best product. As such, we (Proton) find it difficult to compete, particularly with Perodua.

"Perodua does not manufacture a local but Japanese car assembled in Malaysia. But for Proton, from A to Z, everything in Malaysia is aimed at developing the local industry," he added.

Dr Mahathir said consumers did not care if the local automotive industry died off or that 250,000 people would suffer.

"Consumers are only concerned about famous and foreign brands. As such, we will continue trying to overcome this," he added. – Bernama, April 30, 2014.