Proton has announced plans to significantly scale up its sourcing from Malaysian suppliers, with a target to raise local procurement value to RM8 billion by 2030, more than double the RM4 billion recorded last year. The move is part of the national carmaker’s broader strategy to strengthen the domestic automotive ecosystem. According to Proton, increasing local sourcing is expected to generate higher economic value, support technology transfer to Malaysian vendors and open up more opportunities for skilled employment across the supply chain. The company’s procurement growth is closely tied to its sales ambitions. Proton is aiming to deliver 200,000 vehicles this year and has set its sights on becoming Malaysia’s top-selling automotive brand by 2029. At present, the market leader position is held by Perodua, which also ranks second in overall ASEAN sales. On the electrification front, Proton took a major step forward with the launch of its dedicated EV manufacturing facility in Tanjung Malim last September. The plant currently assembles the eMas 7, with the smaller eMas 5 expected to enter local production in the future. Local vendor participation has already shown steady progress. Proton sourced RM3.2 billion worth of parts and components from Malaysian suppliers in 2025, as previously disclosed by former investment, trade and industry minister Tengku Datuk Seri Zafrul Abdul Aziz. The company’s localisation efforts have introduced 18 new technologies, alongside joint ventures covering components such as fuel pumps, electronic gearshift systems and continuously variable transmissions (CVTs). Despite these developments, Proton still trails Perodua in localisation scale. Perodua purchased around RM11 billion in components from local suppliers last year and maintains a localisation rate of about 95%. This gap is also reflected in sales performance, with Perodua registering 359,904 units sold in 2025, compared to Proton’s 157,976 units over the same period.
Malaysia