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Proton to Finalize Indian Assembly Contract By First Quarter 2011

Proton, Malaysia’s major carmaker, is currently negotiating with an India-based OEM (original equipment manufacturer) company, considering a joint venture that will enable it to set up assembly and manufacturing operations in the world’s second most populated country by the end of the first quarter of 2011.

“We know India is an important market but, to be successful, we need to work with a local OEM. We have identified a company and have had many discussions”, said group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir at the launch of the company's Asia-Pacific Rally Championship team yesterday. He also added that the OEM, which is yet to be announced, should already have manufacturing facilities capable of assembling cars.

“The market in India is for small cars, namely the A and B segment cars as well as MPVs. We have already identified the products that would be there”, Syed Zainal Abidin said, identifying the Saga, Persona, Exora and Emas as the likely models to debut on the Indian market.

The Emas, shown at last year’s Geneva motor show, was designed by Italdesign Giugiaro of Italy with a four-seater, five-door hatchback configuration. The car is being developed for the world market, with focus on India, China, the ASEAN (Association of Southeast Asian Nations) and the Middle East.

The Malaysian carmaker sees price and fuel efficiency as the two most important selling assets its cars have to offer, as well as compatibility with alternative fuels like CNG and perhaps LPG. Apart from Malaysia, Proton cars are sold in China, Iran, Pakistan, the UK and Australia, and the company now wants to focus on the Indian car market, which it expects to grow very fast over the next few years.
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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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