At the recent launch of the Geely EX5 in Indonesia, the Chinese automotive giant revealed plans to introduce a full line-up of vehicles in the Archipelago, including internal combustion engine (ICE), electric (EV), and plug-in hybrid (PHEV) vehicles, as it re-enters the market in full force.
The slides used in the presentation even teased models such as the Geely Coolray, Okavango, Xingyuan, and Galaxy Starship 7. If these names sound familiar, they’re Geely’s equivalent counterparts to the Proton X50, X90, the upcoming eMAS 5, and a rumoured PHEV variant of the eMAS 7.
As part of the marque’s re-entry expansion plans, Geely will also be opening a sales and servicing network of 100 dealers within the first three years. But perhaps its most ambitious move is its partnership with PT Handal Indonesia Motor (HIM), who will be acting as contract manufacturer for the Geely EX5. A new local assembly (CKD) line is currently being set up at Bekasi, West Java, with production slated to begin in the second quarter of 2025.
According to HIM’s official press release, the cooperation will also include “an independent research and development (R&D) space to bring innovative technologies and accelerate the development of electric vehicles in Indonesia”, in addition to just manufacturing.
The CKD plans might also be carried over to the other models Geely is planning to introduce in the Archipelago, given their aggressive expansion plans. In stark contrast, Proton has yet to announce any CKD plans for the eMAS 7, with the nation’s first EV model still currently being imported from China.
Geely’s reintroduction in Indonesia might be the biggest roadblock for Proton’s own expansion plans – one that was announced together with Geely when the two shook hands back in 2017, following the Chinese giant’s purchase of a 49.9% stake in the national carmaker.
The promise, then, was for Proton to become the brand for right-hand drive (RHD) and ASEAN markets, with a goal of becoming the third-largest carmaker in ASEAN. Malaysia is also slated to become the right-hand drive production hub for Geely with the establishment of Automotive Hi-Tech Valley (AHTV) in Tanjung Malim, while Geely will only enter markets where Proton is non-existent.
While Proton has announced plans to resume exports to Thailand and Indonesia in 2023, Geely’s presence in the two major right-hand drive market in the region, and even Australia and New Zealand, could hint at a change in strategy – especially when the models Geely plans to introduce in Indonesia significantly overlap Proton’s line-up.
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It’s not just limited to ASEAN too; Geely just opened its manufacturing plant in Egypt to produce the Geely-badged Coolray and Emgrand, where Proton already has a CKD plant there. Recently, Geely has also been rumoured to enter South Africa, a right-hand drive market.
Still, Proton is seemingly bullish on its future, with CEO Li Chunrong only recently reiterating the company’s plans to reach an annual sales of 330,000 units by 2030. How they plan on doing that, though, remains to be seen.
READ: Proton X90 debuts in South Africa, Brunei, and Mauritius – brand saw 79% export growth in 2022
