Proton to sell cheapest car

By David Twomey | May 15th, 2009

Malaysian carmaker Proton Cars has revealed it plans to sell Australia’s cheapest car from early next year as part of a renewed assault on the Australian car market.

Currently the cheapest RRP for a car in Australia is tied between the Proton Savvy and the Hyundai Getz, both on $13,990.

Proton Managing Director John Startari has said that as part of a revitalised assault on the Australian car market the company will launch Australia’s lowest priced sedan, which it believes will be the perfect answer to the current financial climate.

The car, final pricing of which has not yet been revealed, will go on sale in early 2010.

At the same time Proton has said it is redoubling its efforts to rebuild and refresh its dealer network across the country.

The company has severed ties with almost half its existing dealers and is now recruiting new high calibre dealers to broaden the reach and service levels for Proton customers.

Mr Startari, admits that the brand has not performed to expectations, however the resources and backing have now been committed by parent company Proton Cars Berhad to drive the brand forward in Australia.

“The centre piece of our plan is to recruit the best dealer network available, we are not going to expand at all cost, it will be a matter of only signing dealers who are committed and eager to be a part of growing the brand,” said Mr Startari.

“Product, pricing and marketing support have received major boosts to ensure that we have the tools to take Proton to the market,” he said.

“Australia’s lowest cost sedan will be the cornerstone of our range and Proton will present a value for money proposition from the entry level model, through the Persona, to the sporty Satria.

“We will launch a revitalised range with the low cost sedan at a price and specification level that will make it hard to ignore in the market.”

“It will be significantly different to the current Savvy, it is the same car that was launched in Malaysia recently as the Saga, it is a sedan and is powered by a 1.6-litre Campro engine in place of the 1.2 litre engine in the current Savvy,” he added.

The company will not announce the pricing or the name of the new car until the launch, however Mr Startari says its price, equipment levels and overall value for money will make it a contender in the small/light car class.

Mr Startari said that Proton is here to stay and has a solid base on which it can build its future expansion.

“Lotus handling and engineering, high levels of safety and equipment as well as the fact that Proton has stuck it out in this country are advantages that our new dealers have told us gave the brand appeal,” he said.

“There is a car park of around 25,000 Protons on Australian roads, the brand has been established here for 14 years and it’s now time to take the brand to a higher level,” Mr Startari concluded.

RD

Let’s hope that ex-BMW quality expert they hired does his job well before this is released here….
Yianni

Might not be that bad for someone wanting a cheap car.

Proton has been around for a long time and their cars will hopefully be better than the Chinese vehicles that will eventually enter Australia.

The more competition the better I say. I probably would never consider one but I’m sure there’s a market out there.

I just hope the car at that price point is half decent.
Bret

So they’re looking for dealers for “Australia’s cheapest car”?
Perhaps they should try:
Cheap as chips, Go-Lo or The Reject Shop.
Any one would probably be a good fit for Proton.
RoFlmaTiC

Hopefully it looks better than the Savy!
Limoluva

Yuk – if you only have a budget of 10-15k wouldn’t you be better off buying something half decent secondhand. The depreciation on this would be horrendous, probably 50% in the first year.
Station Wagon

If the price goes down so does the standard of quality.
Reckless1

I remember them saying similar words in the past.

Takes more than words to make a silk purse out of a sow’s ear…..

There were 4 dealers and half of them are gone, leaving 2. That’s just what you want when buying a car that is really poor quality – just ask Malaysians who have to buy these things or face 100% import duty for a real car.

Excitement factor here is very zero, for me.
Frontman

Not quite that extreme Reckless but your not actually telling porkies either.
They have had cars with some very good points, only to be stuffed up by some poor spec’s and mediocre (at best engines). Satria GTi would have been an absolutely fantastic P plater car with a 2.0l or 2.4 mivec. Also Waja had the makings of a very good car but the crap engine with Mazda pricing killed it. (although they make great cars second hand and I would put my daughter in a waja tomorrow)
Daniel

I think it’s hilarious that they refer to ‘brand appeal’! The only reason anyone with even a slight degree of good taste would buy this is because it will be dirt cheap. Then again, even that’s not a good enough reason to buy one…
Matt

I’d much rather have a getz, even if it’s a little more expensive.
Andrew M

much much better off getting a decent 2nd hand car.

I still cant figure out why everyone has to have new.

Its the “ive just bought a new POS, but its NEW I tell you!!!” mentality.

You will always get what you pay for.
Being the cheapest car in OZ would more than likely place it as the worst car in OZ too
Andronicus

If they can land it at a super competitive price and advertise the hell out of it (most average joe’s prob dont even know Proton still exists) then they are in with a shot to steal some sales from the Hyundai Getz/ Kia Rio drivers.

Competition is always healthy, the consumer just has to make the right decision for them.
phillip

Corks are popping at Holden’s HQ. Finally a car has appeared that makes the Holden Barina look good.
Tom

I agree Andrew M, especially when you could buy a 2 yr old Misubishi (as an example) which would still have 3 yrs warranty left (same as brand new Proton) for around the same price and it’d be many times better. Sure, with a new car you know its history, but honestly, is that really worth having a car that would be considered budget and sub-standard in the 90′s?

Lada tried a similar tactic in the 90′s, and that got them no where.
Daniel. W

Can Proton please just leave? We have Hyundai’s, Kia’s and Holdenwoo’s that cater to the budget end of the market……and at least there made to a decent standard of quality! Id rather a Great Wall, Geely or a Chery than a Proton…….i wish , i really WISH i was joking…
George

Can’t see how Proton would compete against Kia/Hyundai given that the 2 Koreans are actually building quality cars these days…
Captain Mainwaring

Proton started as the brainchild of a former Malaysian Prime Minister in the days when every car seller in Malaysia (except Proton) had to pay about 100% sales tax. So Proton had about 55% of the local market.
Now that things have come to their senses, Proton has about 10% of the market in Malaysia so are desperate to sell their crap wherever they can for whatever they can get.
Dressing it up in flowery marketing-speak won’t help. This is desperate bottom-of-the-barrel selling.
Even NZ, with two decades of used junk flowing in from Japan, won’t entertain Proton.
Time they shut up shop – the Koreans do ‘cheap’ with a lot more class.
RegularGuy44

Proton’s virtual monopoly is the 2nd biggest reason why I emigrated from Malaysia. Seriously.
Meh

“The car, final pricing of which has not yet been revealed”

Great story guys. Cheapest car without a price. Slow news day?

Proton have under delivered on everything they’ve said since they entered the market. Can’t believe that you got sucked in by their PR crapola…. wait – yes I can.
http://www.speedflux.com/ SpeedFlux

I hope the quality doesn’t down like the the price
Sam

I agree with Matt. I would rather a Getz. Plus they are selling them for 12990 D/A at my local dealer still. In any case, I suspect Hyundai will have plenty of tricks up their sleeve should Proton actually manage to turn out a quality package and start pinching too many sales.
Stevothedevo

If you want something cheap – get a bicycle. It would probably be safer as well. I’ll just stick to 2nd hand aussie made cars on gas. $20 per week to run and you’d have to spend at least $35K to get something better new.
swampdawg

Proton will stuff up again and fit a dud motor or pull off something weird, like make it ugly or build another model with no glovebox.
I can’t see them making a significant impact, other makers are probably laughing. The Dumbbuck ute would sell a lot more if it had a 1.8L + engine.

Hyundai Getz / Kia Rio are far better new car options in the poverty price range.
Joe

“Lotus handling and engineering”

I lol’d. I’m sorry but your kids can be brilliant, world class athletes but that doesn’t change the fact that your still the equivalent of the fat chip-chomping parents sitting in the grandstands struggling to find the energy to raise their arms to cheer.
http://skyline The Salesman

Proton make some great little cars. The GTI Satria has quite the cult following for rally enthusiasts and the Proton Jumbuck has had some good repots to as a strong little work horse. For the money I would say the Persona is on of the best looking cars in the market today. Proton definitely deserve a better repartition than they have. I would say the only reason they have not had more success in Australia is because Australians just don’t know any better or are just uneducated on the product.Would I buy a new Proton? Well yes. Up to date active and passive safety systems. New car warranty. Current shape. Why would you buy a three year old used car for the same money?
Sam

Salesman. Nice try but I’m not convinced. Do you believe a Savvy is better than a Getz?
Dlr1

Does any body actually read the article or just the headline?

Proton’s MD is quoted as saying it will be Australia’s lowest price SEDAN. To do this they only have to undercut the Kia Rio sedan (15490 D/A). No mention of a sub 13000 car or one positioned below the Savvy, just a cheaper SEDAN.
http://skyline The Salesman

It depends on your perception of better Sam. What’s better for you might not be better for others. What do you mean by better? Looks, ride, handling, price, warranty, value, economy. I think the Savvy is too expensive for what is offered but i would buy it over a Getz if i had the choice.
Frontman

Ha Ha Ha MT I just knoew you’d be the only one to come out in full support of Proton
http://skyline The Salesman

Many fond memories of my Proton days FM. I just took a Satria Neo for a bash and was reasonably impressed. Fitting in the car was the biggest problem for me, I am not as slim as i used to be. JW did say i ate too much Red Rooster. I back them up because they do make good cars and if they were marketed a bit better they might have more successes. Don’t forget people used to buy Daewoo’s with their hard earned and IMO Proton has always been a better car than it has been given credit for. Where is PMcQ theses days?
Kit

In Malaysia, this is not a very bad car. Despite “Half Baked Campro” smoke smell when you rev hard and unexpected sudden engine cut, this car is an OK Car to drive around…
Kit

In Malaysia, the price range start from RM 31500 -RM 41498. So how much would it be if convert into Aus ??
shiznitz

kia rio is the cheapest at $12990
liang

proton !!! pls just give up!!! stop wasting malaysian’s money. proton cars are the worsest car i ever driven !!
RD

@ kit, these sell in Malayasia for around 11,800 australian dollars.
Andrew M

Dlr1,
they dont even have to beat 15490 D/A.

They only have to beat the RRP “before on roads”.
If they want to get cheeky they could drop the RRP under the Rio by 1,000 and jack the on roads right up to compensate.
…………………………………………………

I cant believe we are saying we would rather a Getz.
Sad times indeed if the Getz and Rio are winning the better car competition.
Really says what isnt expected from protons new idea.

Personally I think the Getz and Rio should find the scrap heap too.
Stuff the budget market all together.
If you cant afford a real/decent car, Buy one 2nd hand.

If you bought a Getz 12 months ago you will still lose near 15K if you went to trade it in today so dont be fooled into thinking you will save money by buying cheap.

A second hand decent car would have already lost bulk of its value and its initial purchase price would be inline with a new one of these
http://skyline The Salesman

Andrew M.
The used car market has always reflected what is happening in the new car market. At the moment small and mid sized fours in petrol and diesel is what is selling. Therefore cars that fit this market used are holding vale better than most. Don’t forget the whole market is down. Less demand usually means an increase in price. If you cant make money selling in volume than the profit must go up in order to stay viable, as we have seen recently with all the major players.

Your comment

“If you bought a Getz 12 months ago you will still lose near 15K if you went to trade it in today so dont be fooled into thinking you will save money by buying cheap”

You are not serious, are you? A Getz costs less than $15k new to start with.
And who on earth trades a car in after only 12 months?
The Getz is one of the most popular small cars on the market so if you could find a used one 12 months old and save a few thousand dollars than you would buy it.
Frontman

I agree Salesman, it’s amazing how all these experts seem to think everything will lose 15k in the first year. But then forget that the Used cars still devalue as soon as you drive them off the lot. As a matter of fact Used Vehicles tend to drop faster at the moment due to market slowness.
(Is your email your name @ Brand or Your name @ Dealership?)
http://skyline The Salesman

Frontman.
Plus i would rather finance $15,000.00 over five years for a new car that will be five years old when i have finished paying it off than buy a five year old car on finance that will be ten years old when i make the final payment.
If you contact Car Advice from the comments box they will forward my e mail address to you
swampdawg

Re; The Salesman Says:
May 16th, 2009 at 2:18 pm

Good point about Dae/ Holdwoo’s, Holden could do far better by badge engineering Proton’s.
Proton should have very good engineering/ design information at hand.
It seems they just need/ needed someone to manage business better, understand buyers needs better and offer a warranty equal to Hyundai/ Kia. Maybe a new business plan will take them forward.
The satria GTi made me think they were really going places then they seemed to lose the plot.
Andrew M

T/S,
I know someone who ended walking out of the Hyundai dealership owing low 20\’s on a Getz.

Do the sums.
What was the list price of a Getz 12 months ago, then add Auto, then add On roads, then add the protection pack which they fleece you for yet doesnt mean anything at resale time.
Whats that all come too??

Now if you drive past my local Hyundai shop, you will see the foot path lined with plenty of 2nd hand Getzs for only 8K, and they have pretty low k\’s.

If they are selling them for 8K, whats a trade in worth???
Depends on the dealership I suppose and how much profit per unit they need, but i know its usually between 3-5K.

Who sells a car after 12 months??
well get onto carsales and look up cars purely by age.

Also,
was it just me that realised the used car market died in the backside coincidently when the new cars boomed???
When there is more demand on new cars (like we just experienced), there is less demand on used cars and hence an over supply and again in turn trades are worth even less because dealers cant sell the 2nd handies for as much.

And you last sentence just supported My idea that buying a low k car in good knick is the better option.
Buying 2nd hand doesnt mean you have to buy 5 year old, but then in saying that ive come across many Mazdas 5 years old that present a better proposition than a budget car.
shiznitz

andrew m , there is a good chance all the 8k getz are all ex rental cars, and as such the dealer would have got them at a rock bottom price by buying a whole bunch of them,(possibly 3 to 5k) but if the dealer didnt have them, and a customer came in with one to trade, there is a good chance the trade in price would be higher, especially if the car they are buying has a larger profit margin in it.

oh and you will find in most cases there is more profit for the dealer in used cars than new cars at the moment, sad but true.
Andrew M

shiznitz,
I understand that they probably have bought a swag of them from an auction or whatever, but how can they give you more for a trade than they are able to sell them for.

If the fleets want to flood the market and ruin 2nd hand prices on them, the private buyers suffer too, not just the fleets.

Even if a certain dealer doesnt buy his stock from an auction, how quickly is a Getz going to move off of his yard if his is priced at 11K but down the road they are only 8K with a full selection of colours, or 12,990 brand new driveaway now that they are on sale
http://skyline The Salesman

I absolutely applaud Proton for looking at the market and finding a way for the masses to be able to afford a new car that not only meets the latest safety requirements but is cheaper to finance, insure and maintain than a used car.
New cars are now cheaper to buy than they have ever been before. Of course this effects the used car market forcing values down, this should not be a surprise because we all should know that buying a car is not an investment. The loss is interpreted by the market and what the market is prepared to pay. Who determents the market price? The customer who is shopping for a used car does, not the dealer, not Redbook or Glasses Guide. Don’t forget to add up the value you will get from your new car purchase. You are paying for the freedom to go and do what you want to when you need to, that is were the true value is. If you had to walk, catch a bus or taxi everywhere you want to go than it would cost much more than owning a car new or used.
Andrew M

T/S,
I agree that new cars have never been more affordable, but my argument is if shopping on a budget of around the 15K mark, then i would suggest buying a decent 2nd hand car.

A decent 2nd hand car met the same safety standards 5 years ago that the budget cars are only reaching nowdays, so sacrificing safety wont be an issue.
Cars under 2 years old qualify for the same interest rate as brand spankers.
I would have said used cars are cheaper to insure as they arent worth as much, and premiums seem to come down as they age.
Maintainence, well the variable on costs is really the manufacturer not the age. A budget new car isnt necessarily going to have any less problems than a decent used car.

Please note that when I reccommend that a used car (IMO) is a better alternative for the budget restricted, I am clearly stating one of the DECENT kind, and not a clapped out 10yr old dunger with 200,000ks on the clock.
I just thought I’d clear that up as I thought you were taking it from that angle.

There are plenty of low K 18 month old vehicles out there that have lost bulk of their depreciation which present great buying also
swampdawg

We are looking at some interesting times ahead with the cheapest new car competition kicking off, particularly with cut price Chinese cars coming in the next few years.

“Currently the cheapest RRP for a car in Australia is tied between the Proton Savvy and the Hyundai Getz, both on $13,990.”
It is not hard to work out why the Getz outsells the Savvy.
Frontman

Actually Andrew some of what you say is correct, but the Astute buyer looking for cheap transport, not something bought with the heart, then Vehicles like Sonata’s (available from 13k ex renter) or Kia Optima mark very good arguments. These are both massive amounts of cars for the money and are still well under new car warranty. For the dollars, is a much older Honda or Mazda a better car? NO.
Tom

TS, the rate of depreciation is at its highest in the cars first year of ownership which is why buying a near new car is a better use of money than buying a budget new car. A budget brand like a Proton has to depreciate faster as well, for the simple fact people are not willing to pay
the same price for a second hand Proton Savvy as they are a Hyundai Getz or Toyota Yaris. Toyota for the past few years have sold around 2300 Yaris’s a month, which means a large number of those Yaris’s are entering the second hand market and competing with the second hand Savvy’s. The large number of Yaris’s forces their own resale values down, which forces less desirable cars (as shown by market demands) down further. So a new Savvy will cost you much more once you price in depreciation.

Yes, you are paying extra for choice. Looking at the options list of a Savvy though, is that really worth the several thousand dollars buying new costs over say, a second hand Yaris, or even Getz, which are better cars in every quantifiable way?
Andrew M

Frontman,
Now you are also talking used vehicles.

Im Talking up the scenario that you’ve got 15K to spend, does that mean you have to buy a budget car???
Does that mean you have to buy new???

Are you suggesting that i wont be able to find a better car dollar for dollar than a new budget car??

Are you saying that a 5 year old mainstream car will be out classed by a new budget car??

Mazdas and hondas are probably a bad example if you are looking for outright dollar value as they have bloody good resale.
If you want to dull it up and become an astute buyer not caring for anything else other than A-B sort of stuff, then vehicles such the Focus, Corolla, Lancer and Tiida represent my side of the argument better as they have resale that isnt quite as good as the Mazda.

Lets take the first one off the block the Focus.
yes its starting to look a little bland, but the koreans arent oil paintings either. Focus like others I mentioned sell to fleets and hence resale is ordinary.
But in saying that, its still a great car when judged on its actual qualities, and dollar for dollar on the 2nd hand market it presents a great option.

Now when you talk dollar for dollar with the cheaper brands in mind, budget cars look even less appealing new or 2nd hand.
sud_gt

this cheap car is based on savvy’s chassis..proton didn’t have to spent so much during the R&D process..
DesignEngr

Elsewhere this car is known as the “SAGA”. Can’t really see that name taking off…..
FrugalOne

Have’nt we heard all this before?

We DON’T want cheap, we want VALUE

The ONLY way they can get Proton off the ground [imho] is to offer a guaranted buy back price.

Cheers

F-0
scott

We want cheap actually & Suzuki Alto is cheaper than Proton but not in Townsville where the salesmen don’t seem to care about making sales & earning commissions. I really can’t see why even the cheapest cars are so overpriced in Australia compared to elsewhere.
toxic_horse

The alto may be cheaper but it is gutless as and tiny.
I would take the proton if i was that desperate.

http://dodge franz chong

Do what I did and buy a Nissan Micra while they are on runout $14990 drive away.

I did consider Proton and Suzuki before but the fact the latter is too tiny and gutless and I don’t trust made in Malaysia…They do great food there though but not great cars.