Proton, Malaysia's national car brand, is primarily owned by Malaysia, through its leading automotive conglomerate DRB-HICOM, which holds the majority stake. However, China's Zhejiang Geely Holding Group also holds a significant minority stake in the company.
Understanding Proton's Ownership Structure
Proton Holdings Berhad, commonly known as Proton, has undergone significant changes in its ownership structure over the years. Currently, the company's ownership is split between a Malaysian entity and a Chinese automotive giant.
- Majority Shareholder: DRB-HICOM Berhad, a prominent Malaysian diversified conglomerate, holds the controlling 50.1% equity in Proton. This makes Malaysia the country of primary ownership.
- Significant Minority Shareholder: In June 2017, China's Zhejiang Geely Holding Group Co. Ltd., a global automotive powerhouse, acquired 49.9% equity in Proton from DRB-HICOM. This strategic partnership brought new technology, capital, and expertise to Proton.
This arrangement means that while management and strategic direction are largely influenced by DRB-HICOM, Geely plays a crucial role in product development, manufacturing, and international expansion, leveraging its global resources and technological prowess.
Key Ownership Details
| Shareholder | Country | Equity Stake |
|---|---|---|
| DRB-HICOM Berhad | Malaysia | 50.1% |
| Zhejiang Geely Holding Group | China | 49.9% |
This hybrid ownership model allows Proton to maintain its identity as a Malaysian brand while benefiting from Geely's advanced automotive technology and market reach.
The Strategic Partnership with Geely
The entry of Zhejiang Geely Holding Group marked a pivotal moment for Proton. This partnership, which began with Geely's acquisition of a nearly 50% stake, was crucial for Proton's revitalization.
- Technological Transfer: Geely brought its cutting-edge platforms, powertrains, and designs, notably sharing technology from its Volvo brand.
- Product Development: New Proton models, such as the popular X70 and X50 SUVs, are based on Geely platforms, leading to a significant upgrade in quality, features, and performance.
- Market Expansion: Geely's international network and expertise have supported Proton's ambitions for expanding into new global markets, particularly in Southeast Asia and beyond.
- Manufacturing Efficiency: The collaboration has also focused on improving manufacturing processes and supply chain management at Proton's facilities in Malaysia, enhancing overall operational efficiency.
This strategic alliance has positioned Proton to be more competitive in the global automotive landscape, combining Malaysian heritage with global innovation.
