In a news that quite shocked long time Honda fans, Proton announced today that they have signed a partnership with Honda to jointly develop cars for the Malaysian market. Leaving aside the general sentiments, what I believe is happening is that both parties saw in each other the means to achieve their own objectives.
Firstly, in his mid-year speech last month, Honda CEO Ito-san has announced that Honda plans to focus on the mini-car Brio for this region, developing multiple variants off it. The Brio sedan has already been sneaking out in the Honda Thailand website. Next to come is supposedly an SUV based on the Brio. However, having been eye-ing the Malaysian mini-car market for a long time now, Honda is well aware that policies from the relevant authorities are not conducive to any non-Malaysian manufacturers trying to enter into this lucrative market. The annual sales of mini-car in Malaysia is several hundred thousand and for foreign manufacturers like Honda, whose annual sales of 50,000 units is already considered an 'incredible achievement', the mini-car segment is attractive indeed, especially given Honda's recent heavy focus on just sales numbers.
Honda's arch competitor Toyota on the other hand had already entered in a collaboration with the other big Malaysian manufacturer Perodua many years ago. The result was the introduction of the superbly successful Passo model rebadged as a Perodua Myvi. Honda surely have noticed this and must have learned a trick or two from the master of marketing.
Enters Proton. It is a known secret that Proton has been dying to get a slice of the mini-car market. Their previous venture, the Proton Savvy was, to be polite, a lacklustre model. Launched at the same time as the Myvi, it was selling in the tens to Perodua Myvi's thousands. Even today the Savvy was not a very common sight on Malaysian roads. So, Proton most definitely have been looking at ways to eat into Perodua's Myvi market.
So it is highly likely that the main product of this Honda-Proton collaboration will be the introduction of the Honda Brio into the Malaysia market but re-badged as a Proton and with some minor comestic changes and some reduction of contents. Only time will tell if this is a correct guess.
