Geely has established a new factory in Egypt, which will be assembling the Geely Emgrand and Geely Coolray – models familiar to Malaysians as the Proton S70 and Proton X50 – in the country.
This move by Geely – who owns 49.9% of Proton shares – has raised eyebrows, especially since Proton already has an assembly plant in Egypt, which assembles the Proton Saga as a CKD model.
According to Ahram Online, Geely’s new factory, its first in the Middle East and North Africa (MENA) region, boasts two production lines and an annual capacity exceeding 10,000 vehicles. It aims to meet Egypt’s domestic demand and facilitate the export of approximately 30,000 vehicles.
During the factory’s inauguration, Chairperson of Geely Global Automobile and Vice Chairperson of Geely Auto Holding, Song Jun, highlighted Geely’s rapid expansion in Egypt, with over 40 sales and service centres established in just a few years.
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Song emphasised Geely’s commitment to local production, stating that they have achieved a local content rate exceeding 45% and intend to further increase local sourcing. This suggests that Geely may adapt the Geely Emgrand and Geely Coolray to Egyptian road conditions.
The establishment of this production facility could hinder Proton’s expansion plans in Egypt, especially when it comes to introducing new models. With Geely producing similar models to those offered by Proton, the national brand may face challenges in differentiating its lineup and capturing a larger market share.
This move by Geely is not an isolated incident. The company recently re-entered the Indonesian market with the Geely EX5, the cousin of the Proton eMAS 7. This raises questions about Geely’s global strategy and its potential impact on Proton’s overseas presence.
Geely has ambitious plans for Malaysia, aiming to transform the country into a right-hand-drive export hub for the region. The company is investing over RM32 billion in Malaysia. This includes the Automotive High-Tech Valley (AHTV) in Tanjung Malim, which will manufacture cars for both Proton and Geely’s brands.
This development raises questions about the future of Proton’s global expansion strategy. Will the Malaysian carmaker be able to leverage Geely’s investments and expertise to its advantage, or will it face increased familial rivalries from the Chinese carmaker?
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