Proton is considering mass-production of electric cars in Malaysia as part of its efforts to diversify its customer base.

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The company this week met with representatives of Detroit Electric, Netherlands-based Electric Car Europe and the former head of Lotus Engineering, Albert Lam, to evaluate the technology.


Malaysian prime minister Abdullah Ahmad Badawi, as well as Proton’s top executives, took part in the technology road show which included test-drives of Detroit Electric’s latest battery-powered sports car. The vehicle has a very light weight-to-power ratio and accelerates from 0-100km/h (62mph) in around five seconds – which is comparable with conventional sports cars. Its lithium-ion batteries have a range of 300km (200 miles) per charge and a life-cycle of 200,000-300,000km (125,000-200,000 miles).


Detroit Electric is also in talks to mass-market its technology with two other firms, one German and one from the USA.


It plans to sell a range of small and medium passenger cars across Asia and Europe. Malaysia is seen as a promising market for the technology, especially if backed by Proton and the Malaysia government.


Proton has a growing distribution network across Asia and the Middle East and sales operations in Europe and Australia.


If the project goes ahead, a new joint venture company will be established between Malaysia investors; Albert Lam, a chassis engineering specialist; Detroit Electric, which has the battery technology, and Electric Car Europe, which has the electric drive technology. Investments in the first five years could amount to US$300m and would include a new lithium-ion plant and an R&D centre in Malaysia.


Proton also has ample vehicle production overcapacity at present, although it is unclear whether this or new purpose-built facilities would be used. Detroit Electric is targeting 30,000 vehicles in the first year of production, starting from the end of 2009. This would be ramped up to 120,000 in the second year and 270,000 in the third year as new models are introduced.


Tony Pugliese

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