Proton Exora!

Proton surprises me. Proton Exora delights me.

Named after the Ixora (the humble bunga jarum-jarum), a plant native to tropical Asia especially India, the Ixora is a popular item in the long list of Hindu prayer items.

Anyway, I hope nobody at Proton or the Prime Minister’s office is going to take offence to the ‘ties between’ Ixora-Exora and decide to change the name of the car! Stranger things have happened in this beloved land of ours.

The Proton Exora is a beautiful expression of what Malaysia and especially Proton is capable of. A car designed and priced for the times. My earlier postings have lamented at the sheer lack of creativity and common-sense business practices at Proton. Things have indeed changed. If the car indeed looks as good as it looked on print and the waiting list is at reasonable length, the Exora is going to smell heavenly on our roads; not to mention what it is going to do to the health of Proton’s coffers.

But here is a thought – a dilemma even. I read that Perodua is building its own MPV. If this is true, we have an interesting situation in our hands : the product segment and differentiation of Proton and Perodua has blurred. Each is into the other’s turf and in a small market like ours, that may not be the most efficient way to go about doing business. When Perodua was only selling the Kancil and Proton its Waja’s, Wira’s and Perdana’s, there was an equilibrium. Then when Perodua introduced the Myvi and Proton the Savvy, the blurring began. The new Proton Saga, in terms of pricing, has blurred the lines even more and now with potentially two MPVs , it’s going to be interesting to watch. Then of course we have the Nautica (Perodua) and Satria Neo (Proton) which are, well, just there. Persona is probably the only one standing out in terms of well defined market segment and I don’t even want to talk about the ‘ancient’ Perdana.

What does this mean? A merger between Proton and Perodua? I think that's worth one or two rounds of teh-tarik discussion. Also, this merger can become an acceptable ‘excuse’ for the government to prolong the protection given to the local auto industry. After all, with the Exora priced so menacingly against its rivals in the same segment, there are going to be inevitable questions on high taxes imposed on other makes but with a merger of such significance, a few more years of ‘protection’ will be well justified.

So, what can make this dream merger work:

1. The government should provide structural support and then keep off them; let both companies run their business. This means; politicians and politically motivated interest groups should be kept out.
2. A Proton-Perodua merger will be a more attractive option for a potential strategic partner.
3. Proton’s Tanjung Malim plant can be consolidated.

We have a winner in the Exora and we have the opportunity to do something right for the local auto industry. By the way, don't forget Naza Motors in the equation!