Malaysia's first national car company Proton Holdings said it is investing MYR600m (US$136m) to develop a new generation of engines that meet stringent European emission standards.

The automaker, now a subsidiary of local conglomerate DRB-Hicom Bhd, is using the engineering services of UK consulting firm Ricardo Plc and its own subsidiary Lotus to develop the engines. 

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The new engines will use technologies such as variable valve timing (VVT) and gasoline direct injection (GDI). They are being developed to comply with Euro 6C emissions standards, allowing the Malaysian carmaker to re-enter the European market.

The first of a new family of one- and 1.5-litre engines is expected to be ready by the end of 2017 and will feature in Proton cars from 2018.

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