Proton commences CKD assembly of Saga in Egypt, to generate up to RM570mil in revenue
Proton took another step towards expanding its footprint in international markets by announcing the start of CKD operations in Egypt.
The announcement was made during an event at Proton’s Centre Of Excellence headquarters, which was highlighted by a flag off ceremony to send 120 units of left hand drive (LHD) Proton Saga CKD packs to the country.
Proton’s Deputy Chief Executive Officer, Roslan Abdullah said the addition of CKD operations in Egypt brings the number of plants involved in CKD and SKD activities for Proton outside of Malaysia to five.
“As the Malaysian automotive market reaches a natural saturation point, future volume growth potential will come from overseas markets where consumer demand is expected to be on an upward trend in the future,” he added.
The Proton brand has been present in the Egyptian automotive market with its partner, Ezz Elarab since 2004. Overall, nearly 17,000 CBU units have been exported to the country in that time and in 2024, it is forecast that
over 1,400 units will be shipped there.
With the local assembly targeted to start in December this year at an assembly plant owned by Ezz Elarab Elsewedy Automotive Factories (ESAF), the targeted volume for 2025 is expected to grow to 5,000 units of the Proton Saga.
“Locally assembling the Proton Saga in Egypt, allows the company to meet the aim of the Egyptian government
to limit the number of CBU imports into the country while also encouraging local assembly activities.
“This in turn creates the potential for greater future capacity expansion in the country, especially after we launch new models, with the aim to make Egypt the hub for Proton vehicle exports in the North African region,” said Steven Xu, Director of International Sales, Proton.
For the first three years up to the end of 2026, revenue earned by Proton from the export of CKD packs to Egypt is forecast to be RM570 million with a further RM20 million projected as revenue from parts export activities.
At the same time, the local Egyptian economy is expected to earn up to RM180 million in duties and taxes on the assembly of Proton vehicles in the country.
