The partnership between Malaysia's national car maker and Japan's third-largest automotive manufacturer could also expand into collaborations on new vehicle technologies and all-new models, as both look to grow their brands into new markets.
For Proton's parent company, DRB-Hicom Bhd, which purchased a 42.74 per cent stake in the company for 1.291 billion ringgits ($406.8 million) in January, the partnership with Honda is a clear statement of its intention to make Proton a more substantial force in the automotive industry.
"Having a strong and renowned global automotive player like Honda Motor as the foreign strategic partner to Proton will provide the group with the opportunity to grow as an original equipment manufacturer," DRB-Hicom said in a statement.
"The opportunities are endless."
Bloomberg reports the alliance could give Proton access to technology and resources that could help expand its exports, following failed partnership talks with PSA Peugeot Citroen and Volkswagen, while providing Honda with cheaper manufacturing facilities.