Thursday 20 September 2018

Proton X70 SUV

Proton finally launched the rebadged Geely Boyue as the Proton X70 SUV. This is the first time Proton offered a SUV in its line up. The entry model price is set at RM85,000 which is affordable for a SUV of its size. It is very likely to affect the sales of Honda's HRV and BRV which are priced at RM99,000 and RM85,000. The X70 holds a big advantage since it is larger than both the HRV and BRV and comes with a 1.8 Turbo engine.

Geely put a lot of effort into launching this car in a big way to capture a large slice of the market. The car comes in 4 levels of specification ranging from the basic 2WD to the top of the range 4WD version with a long list of accessories and functionality. For a so called local car it is unheard of to have such high level of specifications. Geely went all out to impress the local buyers to gain confidence for their ability to product decent cars at affordable prices. This of course is the long term strategy to build an image and move to exporting their cars to neighbouring countries such as Indonesia and Thailand. China cars struggle in Indonesia and thailand at the moment with Toyota, Honda and Daihatsu being the kings in these 2 countries. Geely through Proton wants to penetrate these markets.

Prior to the acquisition Proton was in the duldrums with its ageing models and dropping sales. The Malaysian public was sick and tired of the poor quality cars Proton produced and it was right timing that Geely came into the picture.

There is speculation that the Geely Borui sedan model could be introduced as early as mid 2019 to add to the Proton model line up. Proton desperately needs a new sedan model to boost its sales. The X70 will get the momentum going but the next sedan model will definitely boost the sales. It is rumoured that Geely already has plans to introduce 4 models over the next 2-3 years and increase their market share. The important thing now is to restructure the service centres to provide sufficient after sales support. Proton's service centres are notoriously poor in terms of service quality and it is about time that it is revamped to boost customer confidence.

In comparison to Perodua, Proton's after sales service cannot match the service quality of Perodua. the Japanese developed system of Perodua's after sales service is among the best in the industry and Proton needs to emulate this quickly. Selling many new cars is one thing but offering after sales service to meet the demand is just as critical. It will be exciting times ahead for Proton with many new models coming in.

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