Proton vs Perodua: Pemenangnya…pemandu Malaysia

In Malaysia, the rivalry between Proton and Perodua, two domestic car manufacturers, is no longer just a contest. Perodua has consistently outperformed Proton, with the gap in sales barely widening. However, things seem to be changing. In the first half of 2026, Proton registered 98,010 new vehicles, a 40.5% increase, setting the best half-year performance since 2002.

Perodua still leads with 158,295 units, but sales have fallen by 4.7%. A year ago, for every Proton sold, Perodua sold about 2.4 cars. Now, that ratio has narrowed to 1.6 to 1, the tightest gap between the two since 2013. Overall, Proton and Perodua now dominate 67% of the Malaysian market, leaving all foreign manufacturers to compete for the remainder.

This rivalry reflects the emergence of two automotive giants. Perodua largely relies on Daihatsu technology from Japan, a Toyota subsidiary. The Ativa, for instance, is based on the Daihatsu Rocky, adapted for the local market. Proton, 49.9% owned by Chinese firm Geely since 2017, has some models derived from Geely's designs. The X50 was built on the Binyue platform, while the X70 is based on the Boyue.

In branding terms, the competition almost mirrors a proxy war between Japanese and Chinese automotive engineering, unfolding on Malaysia's highways with local consumers footing the bill. Geely's influence dates back to 2017. At that time, Proton was in poor shape, with market share nearing a low and financial position strained. After Geely took control, the changes were significant.

Proton ended 2025 with 157,976 units sold and a 19.4% market share, also setting an export record. Now, it forecasts 200,000 units sold in 2026. In January, Proton also recorded its highest monthly sales in 15 years. Proton's most potent weapon currently is its electric vehicle (EV), the Proton e.MAS 7. This model, a sibling to Geely's Galaxy E5, is the most popular EV in Malaysia for 2025.

The e.MAS brand also leads the country in electric vehicle sales, surpassing 20,000 units in less than seven months. The My Mass-produced e.MAS 5 is also proving popular, receiving over 10,000 pre-orders just weeks after launch. This development is not surprising to those following China's automotive progress. Why are Chinese cars getting better?

In 2025, China exported 8.32 million vehicles, becoming the world's largest car exporter for the third consecutive year. BYD alone sold 4.6 million units worldwide, beating Ford. This isn't just about affordable cars simply copying others' designs. Chinese manufacturers now control the EV supply chain, from lithium processing to battery manufacturing.

They can also develop new models in about half the time taken by traditional manufacturers. For them, cars are becoming like smartphones, with software taking the lead. There's no need to take my word for it. Ford's CEO, Jim Farley, himself acknowledged China's EV advancements as the most humbling experience of his career. He drove a Xiaomi SU7 from Shanghai to Chicago for six months before admitting he couldn't part with the car.

The implications for Ford are clear: if the company fails in this competition, its future is at risk. When a top American automotive executive speaks so highly of Chinese cars, it no longer seems like a weakness. Rather, it can be seen as a first-class advantage. Perodua is not just sitting idle. In December 2025, the company launched the QV-E, promoted as Malaysia's first local EV.

The model was developed for RM800 million, involving over 100 local engineers and priced at RM80,000 through a battery subscription plan. Perodua's business model also remains strong. The company sold a record 359,904 units in 2025, making it the second-largest car manufacturer in ASEAN after Toyota. The Bezza, Axia, and Myvi continue to dominate the mid-size segment, while Perodua's ability to keep costs manageable is unmatched.

However, there's an irony. Perodua, which has traditionally relied on Japanese engineering, now has to develop its own EVs almost from scratch because its Japanese partner has few options to offer. Daihatsu has no ready-made passenger EV to use, while Proton can choose from Geely's various models. What does this mean for Malaysia?

Personally, I don't think it matters if our national car uses an imported base model. For most Malaysians, they now get better cars at more competitive prices compared to before, while competition forces both companies to continuously improve their products. Proton's cooperation with Geely also brings real industrial capacity. The first Malaysia-specific EV plant opened in September 2025 in Tanjung Malim, part of the Automotive High-Tech Valley designed to become the hub for the entire automotive supply chain.

Experience from Japan, South Korea, and China shows that nearly all great automotive industries start by learning or adapting technology from others before creating their own. The real challenge is moving from simply installing or adapting someone else's idea to generating their own technology and ideas.