Proton is diversifying its operations and income stream by exploring alternatives throughout the automotive ecosystem and past, and main the hassle is Proton International Providers (PGS), an entirely owned subsidiary of Proton Edar.
Established in 2021 with only one F&B and merchandise outlet, PGS has expanded its scope of operations to now embody six key areas, particularly Life-style, Engineering, Coaching, New Vitality, Logistics and R3 Motorsports. Led by CEO Lee Yeet Chuan, income has elevated exponentially from under RM1 million in 2021 to 19 occasions that on the finish of 2023. PGS is now a key contributor to Proton’s enterprise community.
PGS’ most seen companies are the Life-style and R3 Motorsports divisions. The previous is tasked with managing the Proton Cafe and promoting Proton merchandise whereas the latter is targeted on growing efficiency variants and operating Proton’s racing actions.
Launched in 2021, Proton Cafe provides prospects freshly brewed espresso and meals objects in a relaxed setting. To this point, 16 retailers are working at Proton dealerships and there are plans to succeed in 25 retailers by 2025. As for merchandising, Proton merch has lengthy been out there, however commercialisation has now began underneath PGS. There are at the moment 20 Proton merchandise companions nationwide in addition to a digital store at protonmerchandise.com.
R3 Motorsports celebrated its twentieth anniversary in 2023 with the launch of the Proton X50 R3 twentieth Anniversary Version. This yr, the division is specializing in growing a Proton S70 R3 race automotive with the goal of collaborating within the Sepang 1,000 KM (S1K) race, and rising gross sales of R3 lubricants.
“The retail enterprise for PGS leverages on the robust enthusiasm Malaysians have for Proton. With a lot historical past behind the corporate, we’ve got a possibility to construct nearer ties with Proton homeowners whereas providing them premium services and products. Our actions additionally not directly reinforce Proton’s branding, and that is clearly seen by way of our R3 branded merchandise, lubricants and return to motorsports sooner or later,” Lee stated.
Past retail, PGS additionally undertakes tasks inside Proton’s ecosystem. Doing so permits the dad or mum firm to obtain further income as earnings are shared with Proton Edar. Examples of such tasks embody altering the lighting at Proton’s casting plant to vitality saving models, supplying the furnishings in addition to commissioning new workplace house for division transfers to Proton Tanjong Malim.
The New Vitality division is targeted on the introduction of renewable vitality to help the corporate’s ESG ranking, whereas additionally retailing vitality environment friendly options. Initiatives embody the sale and set up of photo voltaic PV cells to Proton sellers and distributors in addition to collaborating with companions to construct a proof on idea for cell EV charging.
“Proton has been capable of derive a number of advantages by forming PGS. From a costing viewpoint, the corporate is now capable of higher management operational prices whereas PGS retail operations permits us to leverage on the energy of our vendor community and model picture and maximise income alternatives.
“For the longer term, plans are in place to broaden using renewable clear vitality for Proton and our distributors whereas work is at the moment ongoing between PGS and its engineering companions to develop vitality storage and charging options vital for future Proton fashions. Added to initiatives to assist coaching for automotive trade staff in addition to a rising logistics presence, we envision PGS to proceed to make constant contributions to Proton’s backside line sooner or later,” stated Proton Edar CEO Roslan Abdullah.
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