Quick look:
- Since 2022, PROTON’s engine plant has been assembling different powertrain types for the domestic market as well as export for use in Geely models.
- Backed by a RM121 million investment, there are plans to further expand the facility’s capabilities and increase engine production capacity to up to 400,000 units annually by 2028.
When it was established as a national automaker, part of PROTON’s mission was to develop the domestic auto industry as a catalyst towards greater industrialisation. Having the largest production volume at that time, it provided economies of scale for local production of components, sparking the growth of local vendors.
First automotive casting plant
Being a full-fledged automaker, PROTON undertook all the processes of manufacturing cars, not merely assembling them. This meant that it also stamped the body parts, which other local assemblers imported from overseas. Within 10 years, it was the first local automaker to assemble its own engines and transmissions, with the first automotive casting plant in Malaysia established at the HICOM-Glenmarie industrial park in Selangor.
New-generation engine
As manufacturing activities increased at its Tanjung Malim complex in Perak, PROTON started investing in engine manufacturing operations in 2022 with a dedicated facility to produce the new generation of engines for the X-series models. It was another significant step forward in the local production of advanced components.
Over the subsequent years, that facility, situated within the Automotive High-Tech Valley (AHTV), has evolved into a comprehensive powertrain manufacturing hub. To date, more than RM121 million has been invested in the facility to build up its operational flexibility. The assembly lines currently handle a diverse mix of powertrain options on a scale that distinguishes it from other local original equipment manufacturers.
Different types of drivetrains
It now makes a variety of drivetrains – conventional internal combustion engines, turbocharged and naturally aspirated units, dedicated hybrid electric engines, dual-clutch transmissions, dedicated hybrid transmissions, and even electric drive units. This diverse capability allows the plant to supply components for current and future Proton models, as well as electrified vehicles encompassing hybrid, plug-in hybrid, and battery-electric applications.
Exported for use in Geely models
The plant currently operates with a maximum installed capacity of 240,000 engines annually, serving both domestic assembly needs and for exports. The exported components are used for Geely-branded products in overseas markets such as Vietnam, Mexico, and South Africa. This integration connects the local operation directly to the Geely Group’s regional and international supply chains, incorporating Malaysian manufacturing within the global automotive grid.
Localisation efforts have progressed alongside the volume increases. Proton is currently working with 16 component suppliers for the facility, half of which are Malaysian companies. This arrangement helps to build technical capability within the local vendor ecosystem and reduces overall reliance on importing sub-assemblies. Technology updates have also introduced higher levels of automation, where collaborative robots work alongside AI systems deployed for automated quality inspections and quality assurance tracking.
Human capital development
Human capital development remains a core component of the plant’s operational structure. The facility employs a workforce of more than 500 personnel, whose average age is 35. To establish stable technical competencies and support ongoing knowledge transfer, more than 50 Malaysian employees have participated in dedicated manufacturing training programmes in China, bringing international manufacturing methodologies back to the Tanjung Malim operations.
Contributing to auto sector development
According to Dato’ Ir. Abdul Rashid Musa, Deputy CEO of Proton, the plant functions as a long-term infrastructure investment aimed at developing the broader capabilities of the country’s automotive sector.
“Beyond assembling powertrain products, the facility serves as a catalyst for localisation, talent development, technology transfer and export growth, all of which are essential elements for strengthening the country’s automotive ecosystem,” he said. “As the Automotive High-Tech Valley continues to develop, facilities such as this will help attract suppliers, create skilled employment opportunities and establish Malaysia as a regional hub for advanced automotive technologies. The fact that we are assembling products for internal combustion, hybrid, plug-in hybrid and electric vehicles demonstrates our readiness to support the industry’s evolving needs while ensuring Malaysia remains competitive in a rapidly changing mobility landscape.”
“The future of the automotive industry will be shaped by innovation, advanced manufacturing and sustainable mobility solutions. Through investments in facilities such as this, the company is helping to build the foundations required for Malaysia to participate meaningfully in that future while creating economic opportunities for local companies and communities,” he added.
Doubling capacity by 2028
Looking ahead, PROTON plans to further expand the facility’s capabilities and increase engine production capacity to up to 400,000 units annually by 2028. The expansion will ensure the plant remains capable of supporting future PROTON products and growing export demand while continuing to strengthen Malaysia’s position as a regional automotive manufacturing and technology hub.
