This article first appeared in The Edge Financial Daily, on November 25, 2016.

SHAH ALAM: Proton Holdings Bhd is retreating from several of its existing international markets amid intense competition within the automotive industry, as the national carmaker strategises for better growth and presence in its next export markets.

“Exports this year have been very challenging for us,” said its chief executive officer Datuk Ahmad Fuaad Mohd Kenali. “Therefore, we are retreating from several of our markets.”

“We are now studying our export figures and looking at ways to increase our competitiveness before entering new markets or re-entering existing ones,” he told reporters at the launch of the Proton Ertiga MPV EEV yesterday.

Though Proton has been applauded for aggressively turning itself around by launching four new models this year alone, and being one step closer to selecting its foreign strategic partner, Ahmad Fuaad said the group is not resting on its laurels just yet as it strives to reaffirm its presence internationally.

Proton currently exports its cars to at least six countries.

“Due to several circumstances and the regulatory environment of certain foreign markets, we had to withdraw ourselves and slow down our export activities. Notwithstanding this, our export department is actively studying potential markets that might be willing to accept our products,” said Ahmad Fuaad.

Meanwhile, the price of the Proton Ertiga has been fixed between RM58,800 and RM64,800, with the carmaker setting a sales target of 1,500 units per month for this model.

The model, which is a rebadge of the Suzuki Ertiga, is assembled at Proton’s manufacturing plant in Tanjung Malim, Perak, with vehicle parts and components provided by Suzuki Indonesia.

Proton, together with its parent company DRB-Hicom Bhd, in 2015 forged a partnership with Japan’s Suzuki Motor Corp.

Asked when Proton hopes to achieve profitability seeing that it has been making losses since 2012, Ahmad Fuaad said the group aims to “achieve better numbers” in a year’s time, given the positive reception of its recent models including the Perdana, Persona and Saga.

Based on RAM Credit Information’s website, Proton posted a net loss of RM646.3 million for 2015, which was 39.9% higher than the RM462.03 million it lost a year earlier.

“As far as products are concerned, we are confident of turning around and achieving greater sales and profits in a year or so. Bookings and sales of the models launched this year have been very encouraging,” said Ahmad Fuaad.

“Previously, we were forced to [resort] to heavy discounting on ageing models just to push our sales further. But with what we have launched this year, including the Ertiga, we are giving customers better products with better quality and pricing,” he added.

Meanwhile, responding to a question on the latest developments of Proton’s search for a new partner, its chairman Datuk Seri Syed Faisal Albar said that under “current circumstances”, Proton would only be able to announce its decision by the first half of 2017 at the earliest.

“It is still premature for us to mention any names as this involves DRB-Hicom, which is a public-listed company. Our candidates might also be public-listed,” Syed Faisal said.

Earlier this month, The Edge weekly named French carmakers Groupe PSA (formerly known as PSA Peugeot Citroën), Renault SA (part of the Renault–Nissan Alliance) and China’s Geely Automobile Holdings Ltd as possible suitors.

DRB-Hicom’s share price closed unchanged at RM1.12 yesterday, valuing the group at RM2.22 billion.